Usdcad Awaits Cues From Jackson Hole Symposium

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Usdcad Awaits Cues From Jackson Hole Symposium

USD/CAD Hovers Above The 1.3500, Awaits Cues From Jackson Hole Symposium

The USD/CAD pair isn't showing any meaningful direction during Thursday's session. However, it is still trading above the support located at 1.3500, which suggests that bears are still not in charge.

For the most part, the market players are not just being cautious about taking any position as they await fresh cues from the Jackson Hole Symposium. Just a day earlier, the pair got a rejection from the resistance located at 1.3600, which was the highest level in the last few months.

US Business Growth Faces Challenges

At the same time, the US Dollar is under pressure after the US PMI reading came out to be a disappointment. This reading suggests that business activity in the USA has reached a point of stagnation rather than growth.

The current market mood has resulted in a downside move in the DXY, which measures the greenback's strength against other currencies. In addition, we also have the Powell speech lined up about the Fed's plans for any future rate hikes in the USA. So, while we discuss the next USD/CAD direction, we also have to account for what Powell has to say.

On the Canadian side, the retail sales data was weaker than expected, while the crude oil prices are also not as strong as they were in the past. Since the Canadian Dollar (CAD) is linked to commodities such as crude oil, there's a good chance that the USD/CAD may turn lower.

Based on all of this, it makes sense to assume that USD/CAD has established a top near the resistance of 1.3600. The market now awaits more data like the Durable goods orders, initial jobless claims, and the FOMC meeting minutes.

The daily chart of the USD/CAD tells us that the 20 SMA is present at 1.2417 while the 50 and the 100 SMA are present at 1.3294 and 1.3388, respectively.

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