Chart of the day - USDCAD (28.03.2024)

USDCAD is one of the FX pairs that may see some elevated volatility this afternoon. This is because data from the United States and Canada will be released. Final US GDP report for Q4 2023 as well as Canadian monthly GDP report for January will both be released at 12:30 pm GMT today. However, impact of those may be somewhat limited given that monthly GDP readings from Canada are often overlooked and US GDP report will be the third release. Nevertheless, some short-term volatility may be present. Also, some volatility may be present at 3:00 pm GMT when final University of Michigan data for March as well as US pending home sales data for February is released.

Taking a look at USDCAD chart at H1 interval, we can see that the pair is making break above the 1.3600 resistance zone today. This zone was tested a number of times over the past week, with recent upside breakouts being halted in the 1.3610 area. Should we see a break and a daily close above 1.3610, this could hint that a period of sideways trading is over, and a bigger upward move may be looming. In such a scenario, the 1.3650 area will be the potential resistance level to watch, as it saw numerous price reactions over the past year. On the other hand, failure to sustain the breakout above 1.3600 and a pullback below this resistance may hint at a return towards 1.3560 support.

Source: xStation5