Jump to content

Market update: US dollar forecast- technical analysis on USD/CAD, AUD/USD and NZD/USD

Recommended Posts

Analyzing key movements and levels in USD/CAD, AUD/USD, and NZD/USD post-FOMC, offering a snapshot of crucial technical patterns.


original-size.webpSource: Bloomberg


Written by: Diego Colman | Market Analyst, New York
Publication date: 

USD/CAD technical analysis

USD/CAD showed strength after the FOMC decision, but pivoted to the downside on Thursday, nudging lower towards cluster support resting at 1.3390. It is imperative for the bulls to fiercely safeguard this region; any failure to do so could potentially trigger a retracement towards the 1.3300 handle.

Conversely, if the pair regains its poise, its first challenge lies in surpassing the 50-day simple moving average. Beyond this point, the focus shifts to trendline resistance and the 200-day simple moving average, situated in the proximity of 1.3480.

USD/CAD daily chart


original-size.webpSource: TradingView

AUD/USD technical analysis

A shift towards a risk-off sentiment weighed on AUD/USD during Thursday's trading session, though the pair managed to maintain its position above technical support at 0.6525. For market conditions to be conducive to a bullish reversal, this floor must hold; any breach could trigger a move towards 0.6460.

On the flip side, if the mood brightens and the Aussie mounts a comeback, resistance awaits at 0.6600 and then 0.6625. If history is any guide, prices could be rejected from this region on a retest; however, a successful breakout could lead to a move towards 0.6645, followed by 0.6695.

AUD/USD daily chart


original-size.webpSource: TradingView

NZD/USD technical analysis

After a subdued performance after the Fed’s monetary policy announcement, NZD/USD rebounded on Thursday, making strides toward trendline resistance at 0.6155. While this technical ceiling is expected to act as a staunch barrier to further advances, a breakout could bring a key Fib level at 0.6180 into play.

In contrast, should sellers reemerge and trigger a market retracement, cluster support spanning from 0.6085 to 0.6050 will be the first line of defense against a bearish assault. The bears may struggle to push prices below this region, but if they succeed, a move towards 0.6000 could ensue.

NZD/USD daily chart


original-size.webpSource: TradingView




This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Join the BYDFi Demo Trade Profit Posting and grab your chance to share in a 10,000 USDT prize pool!  Show off your trading skills, post your profits, and let's see who comes out on top! Don't miss out on this chance to win big! 🎉
    • The #meme hype surrounding #Solana may have slowed down with the emergence of the Ton network, but it seems that the enthusiasm for Solana is not fading away entirely. While new networks like Ton are gaining attention, Solana has previously generated significant interest and wealth for investors. However, there are concerns about scammers exploiting the Solana network with various honeypot and rugpull schemes, leading some traders to explore other chains like Base and Ton. Despite the rise of Ton blockchain, a new Solana meme project associated with Pepe the Frog has started to gain traction. One such project, LandWolf, has already amassed over 5,000 active Telegram members and 5,000 Twitter followers, indicating early interest and community engagement. The project aims to unite Pepe fans with the broader crypto community, offering a unique value proposition. LandWolf's ability to secure listings on top-tier exchanges like Bitget showcases the developer's influence and the project's potential. Some enthusiasts have already dubbed $WOLF as the biggest meme coin on Solana, highlighting the ongoing interest and excitement within the Solana ecosystem.
    • Meme coins are cryptocurrencies inspired by internet jokes, like Dogecoin. They're inherently risky due to their extreme price swings. While some meme coins remain purely for fun, others are trying to develop actual uses in gaming or finance. These high-risk, high-reward investments often attract "degenerates" (or "degens") who chase quick profits by jumping into unproven projects without much research.   The potential for massive returns with meme coins can't be ignored, however. Dogecoin's 9800% surge in 2021 exemplifies this. A $100 investment could have turned into a life-changing $9800. This experience highlights the potential regret of focusing solely on "safe" investments with lower potential returns.   Taking inspiration from this, some experienced investors are now allocating a small portion of their portfolio to latest meme coins.one of the latest is Miggles listed on Bitget. This strategy allows them to potentially benefit from future bull runs while limiting their overall risk.
  • Create New...