June’s Strong Start for USD/CAD Faces Key Test

June has been very successful for the American dollar to Canadian dollar pair, with a consistent upswing since the beginning of the month. Yesterday, the price reached mid-term highs before a sharp reversal began. Technically, the price is approaching key support levels, particularly the horizontal support at 1.374, marked with orange, which was a resistance in late May and early June. If the price forms a bullish reversal around this support, it could be a good buying opportunity. However, if it breaks below the orange support and the red uptrend line, it would signal a sell.

Today’s inflation numbers and the Federal Reserve’s interest rate decision, along with the statement and press conference, are expected to induce significant volatility in pairs with the American dollar, providing clearer market direction. The anticipation of these events means we should soon have a clearer understanding of the pair’s future movements.

Overall, traders should watch for a bullish reversal at the orange support area as a buying opportunity, but remain prepared to sell if the price breaks below this level and the red uptrend line. The imminent economic data releases will likely play a crucial role in determining the next move for this currency pair.

Source: https://www.axiory.com/analytics/technical-analysis/june-s-strong-start-for-usd-cad-faces-key-test