USD/CAD: outlook for September 4-8

USD/CAD: outlook for September 4-8

2019-11-11 • Updated

Canadian dollar keeps making impressive gains versus its US counterpart. USD/CAD made an attempt to recover, but was severely rejected down from 1.2660 and fell to the lowest levels in more than 2 years.

The pair was hit both by the US problems and Canada’s bright economic figures. The CAD strengthened even as oil prices slipped in the wake of Hurricane Harvey, which has paralyzed a quarter of the US refining industry. A report released on Thursday showed that Canadian GDP grew at 4.5% annual pace in the second quarter, at the fastest pace since 2011. In addition, Mexican Economy Minister said on Thursday that Mexico and Canada would remain in the North American Free Trade Agreement even if the US administration abandoned the accord.

Traders are now almost sure that the Bank of Canada will raise its benchmark interest rate this year. Some players are even expecting a rate hike as soon as at the upcoming meeting on Wednesday, September 6. Such possibility is estimated at 30%. The likelihood of a rate hike in 2017, in general, is estimated at 85%.

Canadians will celebrate the Labor Day on Monday, and banks both in Canada and the US will be closed. Other days of the week will be packed with important events for CAD. Economic data releases include trade balance, building permits, Ivey PMI and employment figures.

USD/CAD remains in a downtrend. This trend will likely continue. A weekly close below 200-week MA at 1.2430 will be a bearish sign. Next support levels are at 1.2300 and 1.2200. MACD divergence on the daily chart may allow some correction to the upside. Resistance is at 1.2430 and 1.2550.



What will move the market on September 6-10?
What will move the market on September 6-10?

Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.

Latest news


For those who may be unfamiliar with Price Action trading, the horizontal arrows represent areas where the market structure was broken. As you can see in the scenario above, price broke below the previous low at the two marked instances

TRADE IDEA: Technical Breakdown of Top Cryptos
TRADE IDEA: Technical Breakdown of Top Cryptos

Let's start off with a look at the Daily timeframe on Bitcoin. We currently see price reacting to the rally-base-rally demand zone between the 15,600 - 14,300 price area. Price also seems to have found support off the trendline support as marked in the image above. Interestingly, this means the overall bias on BTCUSD is Bullish.

CBDC: Technology of the Future or Dystopia?
CBDC: Technology of the Future or Dystopia?

Central Bank Digital Currencies (CBDCs) are virtual national money. The idea of ​​creating such currencies came to the authorities after the success of cryptocurrencies, which also exist only in digital form.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera