The USD/CAD pair is trading near 1.3915, with the Canadian Dollar showing resilience despite mixed US economic data.
Key Factors:
- US Economic Data: While the US economy showed some signs of strength, particularly in the job market, concerns about a potential slowdown have also emerged.
- Federal Reserve Expectations: The market is pricing in a 25 basis point rate cut by the Federal Reserve in November, which could weigh on the US Dollar.
- Canadian Dollar Strength: The Canadian Dollar has been supported by higher oil prices and expectations for a potential rate hike by the Bank of Canada.
Technical Analysis:
- Overbought Conditions: The USD/CAD pair is currently overbought, as indicated by the RSI. This suggests that a short-term correction may be on the horizon.
- Potential Support and Resistance: The 1.3900 level is a key level to watch, as a break below this level could lead to further downside.
