Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Canadian Dollar Outlook: USD/CAD Halted by Event Risk. Fed, BoC on Deck

Canadian Dollar Outlook: USD/CAD Halted by Event Risk. Fed, BoC on Deck

Tammy Da Costa, Analyst

Canadian Dollar Fundamental Outlook: Neutral

  • USD/CAD uncertain after two doji candles represent indecision
  • Price action pauses at a critical juncture, Loonie remains bound by psychological resistance
  • Canadian Dollar (Loonie) remains vulnerable to Fed speak and hawkish commentary this week from the Fed Chair, Jerome Powell.
Forex for Beginners
Forex for Beginners
Recommended by Tammy Da Costa
Forex for Beginners
Get My Guide

The Federal Reserve and the BoC (Bank of Canada) are on this week’s event risk as market await the BoC interest rate decision and Fed Chair Powell testimony. With interest rate forecast continuing to contribute to driving volatility, the BoC is expected the pause its on their policy rates while the Federal Reserve will likely increase rates by a further 25 basis points.

The Federal Reserve Rate Probability

Source: Refinitiv

Bank of Canada (BoC) Policy rates Distribution

With interest rate differentials widening between the two currencies, any changes to the narrative or the repricing of new information could influence price action.

Although the Fed has remained hawkish over recent weeks, the remainder of the economic docket poses an additional threat for volatility for USD/CAD.

DailyFX Economic Calendar

To learn more about how to trade USD/CAD , check out ourDailyFX Education section.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Tammy Da Costa
Trading Forex News: The Strategy
Get My Guide

USD/CAD Technical Analysis

On the daily chart below, USD/CAD is currently testing the 1.36 psychological handle, settling around this zone over the past two sessions. With the two doji candles suggestive of indecision, a break of this zone could drive prices in either direction.

For bullish continuation to be probable, the Canadian Dollar would need to breach 1.365 and retest 1.370. However, if prices falter and trade below Fibonacci support around 1.356, bears may have the opportunity to push prices toward prior support at 1.346.

USD/CAD Price Chart (Daily)

Chart prepared by Tammy Da Costa using TradingView

USD/CAD Bullish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -23% 18% 0%
Weekly -5% 2% -1%
What does it mean for price action?
Get My Guide

-- Written by Tammy Da Costa, Analyst for

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.