We can observe that the price is currently trading near a resistance area. There are two possible scenarios that could play out - the price could rebound from the resistance level and continue to trade within its current range, or it could break below the resistance level and potentially begin a downtrend. To help identify potential levels of support and resistance, we can use Fibonacci speed resistance fan tools. These tools use Fibonacci ratios to identify important levels where the price may rebound or pullback.
However, it's important to keep in mind that there are many factors that can influence currency prices, such as economic data releases, geopolitical events, and changes in global market conditions. In the case of the USDCAD pair, both currencies have the potential to be equally strong. The Canadian dollar (CAD) may be supported by soaring oil prices, as Canada is a major exporter of oil. On the other hand, the US dollar (USD) may be supported by improving consumer and labor data, as well as hawkish monetary policy from the Federal Reserve.
Let's wait for some data to be released from the US this week. if it's not good enough, the bearish possibility will be even stronger.
However, it's important to keep in mind that there are many factors that can influence currency prices, such as economic data releases, geopolitical events, and changes in global market conditions. In the case of the USDCAD pair, both currencies have the potential to be equally strong. The Canadian dollar (CAD) may be supported by soaring oil prices, as Canada is a major exporter of oil. On the other hand, the US dollar (USD) may be supported by improving consumer and labor data, as well as hawkish monetary policy from the Federal Reserve.
Let's wait for some data to be released from the US this week. if it's not good enough, the bearish possibility will be even stronger.