{"id":5259,"date":"2024-08-20T10:17:20","date_gmt":"2024-08-20T10:17:20","guid":{"rendered":"https:\/\/alchemymarkets.com\/?post_type=market_insights&#038;p=5259"},"modified":"2025-05-14T09:28:43","modified_gmt":"2025-05-14T09:28:43","slug":"usdcad-dxy-aug-2024","status":"publish","type":"market_insights","link":"https:\/\/alchemymarkets.com\/de\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/","title":{"rendered":"Canada Winning? USDCAD Could Fall as DXY Breaks Triangle Lower"},"content":{"rendered":"\n<p>USDCAD is currently testing a significant daily support level at $1.36 CAD, marking this the fourth retest of the level. With every retest, a support level becomes weaker \u2013 so will today be the day USDCAD breaks lower?<\/p>\n\n\n\n<p><strong>This price action comes alongside two significant events:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Canada will be releasing its CPI data in a few hours at 12:30PM (GMT).<\/li>\n\n\n\n<li>DXY has officially closed a day below a significant triangle pattern formed since July 2023, which signals weakness on the DXY and USDCAD.<\/li>\n<\/ol>\n\n\n\n<p>Combined together, these factors may contribute to a lower USDCAD in the short term, with several key support levels to watch.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Technical Analysis of USDCAD (August 20th, 2024)<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"615\" src=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/USDCAD-TA-24.08.20-1024x615.jpg\" alt=\"\" class=\"wp-image-5262\" srcset=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/USDCAD-TA-24.08.20-1024x615.jpg 1024w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/USDCAD-TA-24.08.20-300x180.jpg 300w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/USDCAD-TA-24.08.20-768x461.jpg 768w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/USDCAD-TA-24.08.20.jpg 1438w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Bias: <\/strong><strong>Bearish<\/strong><\/p>\n\n\n\n<p>After forming a significant rejection at $1.395, USDCAD has declined onto a significant support zone between $1.360 \u2013 $1.362 CAD. As this price zone has been retested multiple times already in the past, this results in a<strong> weaker support zone<\/strong>. So while a bounce is possible, our bias remains bearish.<\/p>\n\n\n\n<p>Additionally, the <a href=\"https:\/\/alchemymarkets.com\/education\/indicators\/relative-strength-index\/\">relative strength index (RSI)<\/a> has not reached an oversold area yet, which would suggest the price isn\u2019t ready to drastically reverse yet.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>If this level does break lower, two support zones to watch are:<\/strong><br>\u2022 Approx. $1.337 &#8211; $1.341 CAD<br>\u2022 Approx. $1.318 &#8211; $1.324 CAD<\/td><\/tr><tr><td><strong>If the level does provide a bounce, two resistance zones to watch are:<\/strong><br>\u2022 Bearish Fair Value Gap (FVG) at $1.379 &#8211; $1.381 CAD<br>\u2022 October 2022 Highs at $1.389 &#8211; $1.398 CAD<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Key Canadian CPI Data to Watch:<\/strong><\/h3>\n\n\n\n<p>Furthermore, this asset may see movements today if there are any surprise readings in the CPI announcement. If the data deviates from the forecast, here\u2019s what you can expect:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Higher than expected:<\/strong> USDCAD may see a volatile rise in price<\/li>\n\n\n\n<li><strong>Lower than expected:<\/strong> USDCAD may see a volatile price decline<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>News<\/td><td>Previous<\/td><td>Forecast (Expectations)<\/td><\/tr><tr><td>CPI m\/m<\/td><td>-0.1%<\/td><td>0.4%<\/td><\/tr><tr><td>Median CPI y\/y<\/td><td>2.6%<\/td><td>2.5%<\/td><\/tr><tr><td>Trimmed CPI y\/y<\/td><td>2.9%<\/td><td>2.8%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The CPI data release is scheduled for 12:30PM at GMT+0 time.&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h2 class=\"wp-block-heading\">Technical Analysis of DXY (August 20th, 2024)<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"615\" src=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/DXY-TA-24.08.20-1024x615.jpg\" alt=\"\" class=\"wp-image-5264\" srcset=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/DXY-TA-24.08.20-1024x615.jpg 1024w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/DXY-TA-24.08.20-300x180.jpg 300w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/DXY-TA-24.08.20-768x461.jpg 768w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/DXY-TA-24.08.20.jpg 1438w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Bias: <\/strong><strong>Bearish<\/strong><\/p>\n\n\n\n<p>The Dollar Index (DXY) is looking like it\u2019s in some hot water; a daily candle has definitively closed below its <a href=\"https:\/\/alchemymarkets.com\/education\/strategies\/symmetrical-triangle-pattern\/\">symmetrical triangle pattern<\/a>. This threatens a significant move down with approximately 7,770 pips, according to the triangle\u2019s measured move target.<\/p>\n\n\n\n<p>The RSI tells a story of hope, however, as the DXY is currently oversold at 29.71, sitting below the RSI 30. If the DXY can reclaim the lower trendline of the triangle, we could potentially see a strengthening dollar in the coming days. Despite this, it is possible for the DXY to continue to fall lower.<\/p>\n\n\n\n<p>Overall on a technical level, the DXY is looking weak and has the potential to drop towards its psychological support zone at approximately 100.000. If a decline does occur on the DXY, the USDCAD should weaken as well, supporting our projections above.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>If the DXY does break lower, the main support zones to watch are:<\/strong><br>\u2022 December 2023 Lows at 100.617<br>\u2022 July 2023 Lows at 99.578<br>\u2022 Psychological Price Level at 100.000<br>\u2022 Key Support from 2017 at approximately 94.714 &#8211; 95.193<\/td><\/tr><tr><td><strong>If the DXY does reclaim its lower trendline, two resistance zones to watch are:<\/strong><br>\u2022 Horizontal resistance at 104.569 &#8211; 104.824<br>\u2022 Upper trendline at approx. 105.591<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p><strong>You may also be interested in:<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/tasman-sea-tussle-aud-nzds-potential-to-shine\/\">Tasman Sea Tussle: AUD\/NZD\u2019s Potential to Shine<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/alchemymarkets.com\/education\/market-insights\/weekly-outlook\/central-bank-chess-the-feds-next-move-and-eurozones-economic-jitters\/\">Central Bank Chess: The Fed\u2019s Next Move and Eurozone\u2019s Economic Jitters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Will today be the day USDCAD breaks lower? CPI data release and a weakening DXY could contribute to a price decline on the FX pair.<\/p>\n","protected":false},"author":159,"featured_media":5260,"parent":0,"comment_status":"open","ping_status":"closed","template":"","market_insights_categories":[18],"class_list":["post-5259","market_insights","type-market_insights","status-publish","has-post-thumbnail","hentry","market_insights_categories-chart-of-the-day"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Canada Winning? USDCAD Could Fall as DXY Breaks Triangle Lower - Alchemy Markets<\/title>\n<meta name=\"description\" content=\"Will today be the day USDCAD breaks lower? CPI data release and a weakening DXY could contribute to a price decline..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/alchemymarkets.com\/de\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/\" \/>\n<meta property=\"og:locale\" content=\"de_DE\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Canada Winning? USDCAD Could Fall as DXY Breaks Triangle Lower - Alchemy Markets\" \/>\n<meta property=\"og:description\" content=\"Will today be the day USDCAD breaks lower? CPI data release and a weakening DXY could contribute to a price decline..\" \/>\n<meta property=\"og:url\" content=\"https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/\" \/>\n<meta property=\"og:site_name\" content=\"Alchemy Markets\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-14T09:28:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/COTD-24.08.20.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"914\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Gesch\u00e4tzte Lesezeit\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 Minuten\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Canada Winning? USDCAD Could Fall as DXY Breaks Triangle Lower - Alchemy Markets","description":"Will today be the day USDCAD breaks lower? CPI data release and a weakening DXY could contribute to a price decline..","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/alchemymarkets.com\/de\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/","og_locale":"de_DE","og_type":"article","og_title":"Canada Winning? USDCAD Could Fall as DXY Breaks Triangle Lower - Alchemy Markets","og_description":"Will today be the day USDCAD breaks lower? CPI data release and a weakening DXY could contribute to a price decline..","og_url":"https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/","og_site_name":"Alchemy Markets","article_modified_time":"2025-05-14T09:28:43+00:00","og_image":[{"width":1600,"height":914,"url":"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/COTD-24.08.20.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Gesch\u00e4tzte Lesezeit":"4 Minuten"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/","url":"https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/","name":"Canada Winning? USDCAD Could Fall as DXY Breaks Triangle Lower - Alchemy Markets","isPartOf":{"@id":"https:\/\/alchemymarkets.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/#primaryimage"},"image":{"@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/#primaryimage"},"thumbnailUrl":"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/COTD-24.08.20.jpg","datePublished":"2024-08-20T10:17:20+00:00","dateModified":"2025-05-14T09:28:43+00:00","description":"Will today be the day USDCAD breaks lower? CPI data release and a weakening DXY could contribute to a price decline..","breadcrumb":{"@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/#breadcrumb"},"inLanguage":"de-DE","potentialAction":[{"@type":"ReadAction","target":["https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/"]}]},{"@type":"ImageObject","inLanguage":"de-DE","@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/#primaryimage","url":"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/COTD-24.08.20.jpg","contentUrl":"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/08\/COTD-24.08.20.jpg","width":1600,"height":914},{"@type":"BreadcrumbList","@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/chart-of-the-day\/usdcad-dxy-aug-2024\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/alchemymarkets.com\/"},{"@type":"ListItem","position":2,"name":"Market Insights","item":"https:\/\/alchemymarkets.com\/education\/market-insights\/"},{"@type":"ListItem","position":3,"name":"Canada Winning? USDCAD Could Fall as DXY Breaks Triangle Lower"}]},{"@type":"WebSite","@id":"https:\/\/alchemymarkets.com\/#website","url":"https:\/\/alchemymarkets.com\/","name":"Alchemy Markets","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/alchemymarkets.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"de-DE"}]}},"_links":{"self":[{"href":"https:\/\/alchemymarkets.com\/de\/wp-json\/wp\/v2\/market_insights\/5259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alchemymarkets.com\/de\/wp-json\/wp\/v2\/market_insights"}],"about":[{"href":"https:\/\/alchemymarkets.com\/de\/wp-json\/wp\/v2\/types\/market_insights"}],"author":[{"embeddable":true,"href":"https:\/\/alchemymarkets.com\/de\/wp-json\/wp\/v2\/users\/159"}],"replies":[{"embeddable":true,"href":"https:\/\/alchemymarkets.com\/de\/wp-json\/wp\/v2\/comments?post=5259"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alchemymarkets.com\/de\/wp-json\/wp\/v2\/media\/5260"}],"wp:attachment":[{"href":"https:\/\/alchemymarkets.com\/de\/wp-json\/wp\/v2\/media?parent=5259"}],"wp:term":[{"taxonomy":"market_insights_categories","embeddable":true,"href":"https:\/\/alchemymarkets.com\/de\/wp-json\/wp\/v2\/market_insights_categories?post=5259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}