USDCAD Tries Halting 300 Pip Pullback Ahead of Jackson Hole
The USDCAD is firming going into the US morning and trying to bounce off the psychologically key 1.26 whole figure level. Significantly, although the USDCAD has corrected over 300 pips since Friday's fresh 2021 peak, the USDCAD could see fresh buying demand as early as today following the US GDP data at 830am EST, and more likely following Friday's highly anticipated Fed comments out of Jackson Hole. Nevertheless, bulls are best prepared for a volatility surge post-Jackson Hole going into Monday that could briefly bring the USDCAD back to upchannel support (on the daily chart) and to the weekly chart's prior downchannel resistance. The weekly, daily and 4hr RSI, Stochastics and MACD are mostly bottomish, rallying or consolidating recent gains. I am looking to go long in the green zone (of the daily chart), targeting the red zone for Wednesday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).
