USD/CAD Rebounds Over 1% from August Low, Focus on Key Support Levels
USD/CAD has snapped its four-week losing streak, rebounding over 1% from its August low after the recent decline stalled just above the yearly open. The Canadian dollar's yearly rising technical structure keeps the broader bullish outlook viable while above key support levels.
The recovery still needs follow-through to suggest a more significant low is in place and shift the focus back toward trend continuation, according to FOREX.com analysis. A renewed break lower would undermine the reversal and increase the risk of a larger decline toward the yearly lows.
A busy start to September sees major Canadian and U.S. economic data releases, including the Bank of Canada rate decision on Wednesday and key employment reports on Friday. The market is expecting policymakers to remain on hold but will closely scrutinize accompanying guidance for clues on the policy outlook.