USD/CAD Exchange Rate Prediction – The Dollar Edges Higher

The USD/CAD edged higher despite a broad selloff in the greenback.  On Friday, the stronger-than-expected jobs report failed to buoy the greenback. The market now seems convinced that the Fed will remain on hold until the Q3 of 2022. Yields rebounded slightly. The House of Representatives passed an infrastructure bill which they have now sent to President Biden to pass.

Technical analysis

The dollar edged slightly higher on Monday. The exchange is trading above support near the 10-day moving average, 1.2397. Resistance is seen near the 50-day moving average at 1.2543. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are overbought with the fast stochastic printing a reading of 85, above the overbought trigger level. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index is generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).

The House Finally Passes an Infrastructure Bill

The House of Representatives passed its 1-trillion dollar infrastructure bill. The stimulus is likely to buoy roads, bridges and the electrical grid. It will also focus on WiFi as well as electric car charging stations. Many of these items require both copper and sliver which has buoyed the metals complex.