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28.07.202120:31 Forex Analysis & Reviews: USD/CAD: Traders Are Waiting For The FOMC Press Conference!

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USD/CAD is located at 1.2569 level after dropping a little after the FOMC Statement. As you already know, the FED kept its Federal Funds Rate unchanged at 0.25% as expected. The Dollar Index dropped, so the USD is vulnerable to depreciate versus its rivals.

You should be careful as the FOMC Press Conference could change the current sentiment. Sharp movement could appear during Powell's speech. USD/CAD stayed higher after the Canadian inflation data.

The CPI reported a 0.3% growth versus 0.4% expected, while the Core CPI increased by 0.3% versus 0.4% growth in the former reading period.

USD/CAD Up Channel!

USD/CAD failed again to close and stabilize above the 1.2590 static resistance. The outlook is still bullish as long as it stays above the uptrend line, within the up channel's body. Only a valid breakdown through the uptrend line could really invalidate an upside continuation.

Technically, a bullish closure above the 1.2607 high may signal further growth. Also, jumping and stabilizing above the weekly pivot point of 1.2629 could attract more buyers and could confirm an upside continuation.

Outlook!

Buy USD/CAD after jumping and closing above 1.2629 weekly pivot point and use the 1.2800 as a potential upside target.

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