USD/CAD Pulls Back Amid Higher Odds for Harris Win
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The USDCAD pair opened lower this week as rising odds of a Harris victory put pressure on the greenback. With the U.S. election outcome uncertain, traders remain cautious, and price action is likely to remain volatile until a clearer picture emerges. Bulls will watch for a breakout above recent highs to resume upward momentum, while bears will seek a move below 1.3860 to build downside bets.
USDCAD Retreats on Rising Odds of Harris Victory
The USDCAD pair saw a pullback at the start of the week as a jump in Kamala Harris's winning odds weighed on the U.S. Dollar. This dynamic has led to increased caution in the markets, with traders anticipating a potentially significant impact on the USD depending on the election outcome. A "red sweep" scenario is viewed as the most bullish for the greenback, while a "blue sweep" would likely exert more downward pressure on USD pairs.
Daily Technical Analysis: Key Levels in Focus
On the daily chart, USDCAD has pulled back from recent highs, revealing a short-term weakness in the greenback. The bulls are targeting a breakout above the two-year high to solidify the uptrend, while bears eye support at 1.3860. A move below this level could set the stage for further declines, especially if a Harris victory dampens market sentiment for the Dollar.
4-Hour Analysis: Trendline Break Signals Weakening Momentum
The 4-hour timeframe shows a break below a minor upward trendline that was supporting bullish momentum. This break is often seen as an early sign of potential trend reversal. Buyers are expected to step in around the 1.3860 level, where support remains strong, but if this fails, sellers will target 1.3785 for the next leg down.
1-Hour Analysis: Rangebound Action and Election Volatility
The 1-hour chart reflects rangebound movement as USDCAD awaits election results. The price remains within daily ranges, suggesting that near-term choppiness will persist until there is more clarity on the U.S. election. Traders should expect potential volatility as the election results roll in, with both upside and downside risks in play.
Upcoming Catalysts for USDCAD
Besides the U.S. election, the week is packed with key economic releases. Tuesday brings the U.S. ISM Services PMI report, which could influence USD pairs. On Thursday, traders will focus on U.S. Jobless Claims and the FOMC Policy Decision, while Friday wraps up with the Canadian Labour Market report and the University of Michigan Consumer Sentiment report.
Market Sentiment and Strategy
With election results likely to set a lasting trend, short-term strategies should remain cautious. Rangebound trading may continue until a decisive direction emerges, but a breakout above recent highs or a drop below 1.3860 could offer more definitive trade opportunities for USDCAD in the near term. --
USDCAD Retreats on Rising Odds of Harris Victory
The USDCAD pair saw a pullback at the start of the week as a jump in Kamala Harris's winning odds weighed on the U.S. Dollar. This dynamic has led to increased caution in the markets, with traders anticipating a potentially significant impact on the USD depending on the election outcome. A "red sweep" scenario is viewed as the most bullish for the greenback, while a "blue sweep" would likely exert more downward pressure on USD pairs.
Daily Technical Analysis: Key Levels in Focus
On the daily chart, USDCAD has pulled back from recent highs, revealing a short-term weakness in the greenback. The bulls are targeting a breakout above the two-year high to solidify the uptrend, while bears eye support at 1.3860. A move below this level could set the stage for further declines, especially if a Harris victory dampens market sentiment for the Dollar.
4-Hour Analysis: Trendline Break Signals Weakening Momentum
The 4-hour timeframe shows a break below a minor upward trendline that was supporting bullish momentum. This break is often seen as an early sign of potential trend reversal. Buyers are expected to step in around the 1.3860 level, where support remains strong, but if this fails, sellers will target 1.3785 for the next leg down.
1-Hour Analysis: Rangebound Action and Election Volatility
The 1-hour chart reflects rangebound movement as USDCAD awaits election results. The price remains within daily ranges, suggesting that near-term choppiness will persist until there is more clarity on the U.S. election. Traders should expect potential volatility as the election results roll in, with both upside and downside risks in play.
Upcoming Catalysts for USDCAD
Besides the U.S. election, the week is packed with key economic releases. Tuesday brings the U.S. ISM Services PMI report, which could influence USD pairs. On Thursday, traders will focus on U.S. Jobless Claims and the FOMC Policy Decision, while Friday wraps up with the Canadian Labour Market report and the University of Michigan Consumer Sentiment report.
Market Sentiment and Strategy
With election results likely to set a lasting trend, short-term strategies should remain cautious. Rangebound trading may continue until a decisive direction emerges, but a breakout above recent highs or a drop below 1.3860 could offer more definitive trade opportunities for USDCAD in the near term. --