Key Points
- The US Dollar continued to decline and moved below 1.2500 against the Canadian Dollar.
- There is a major bearish trend line forming with resistance near 1.2510 on the hourly chart of the USDCAD pair.
- This past week, speech by Chair Janet L. Yellen on August 25, 2017 was the main event.
- Her speech mainly focused on the Financial Stability a Decade after the Onset of the Crisis.
USDCAD Technical Analysis
There US Dollar remained in a downtrend and moved below the 1.2580 and 1.2550 support levels against the Canadian Dollar. The decline was such that the USDCAD pair even failed to hold the 1.2500 handle the 21 hourly simple moving average.
The pair recently traded as low as 1.2465 and currently correcting higher towards the 23.6% Fib retracement level of the last decline from the 1.2539 high to 1.2465 low.
On the upside, there is a major bearish trend line forming with resistance near 1.2510 on the hourly chart of the USDCAD pair. Moreover, the 21 hourly simple moving average is positioned with the 61.8% Fib retracement level of the last decline from the 1.2539 high to 1.2465 low to act as a major barrier near 1.2510.
Chair Janet L. Yellen Speech
This past week, speech by Chair Janet L. Yellen on August 25, 2017 was the main event. She mainly covered and spoke about focused on the Financial Stability a Decade after the Onset of the Crisis and did not focus much on the interest rates.
She mentioned that:
Reforms put in place after the 2007 to 2009 crisis have strengthened the financial system without impeding economic growth and any changes to these rules should remain modest. She defended the regulations enacted after the Great Recession.
Overall, there are possibilities of more declines in USDCAD as long as the pair is below the 1.2510 resistance zone.
