USD/CAD Faces Resistance at 1.3200 Amidst Optimism from US...

USD/CAD Faces Resistance at 1.3200 Amidst Optimism from US Consumer Confidence

The USD/CAD pair is met with challenges in gaining momentum beyond the 1.3200 area during the Asian session on Wednesday. Although some follow-through buying is evident, the currency pair struggles to make significant headway. Traders are eagerly awaiting the Federal Open Market Committee (FOMC) meeting, a closely-watched event scheduled later in the North American session. As of now, the major pair is trading at 1.3185, showing a modest gain of 0.09% for the day.

Recent data from the Conference Board survey is painting an optimistic picture for the US economy. US consumer confidence has reached a two-year high in July, with the figure rising to 117.0 from the revised June reading of 110.1 (previously reported as 109.7). This is the highest reading recorded since July 2021. The positive consumer confidence data is fueling hopes that the economy may avoid a recession this year. As a result, this newfound optimism could support the US dollar and limit the upside potential for the commodity-linked Canadian dollar (Loonie).


TurnAround Point: 1.3210

Our preference

Short positions below 1.3210 with targets at 1.3150 & 1.3130 in extension.