**USD/CAD Daily Technical Outlook and Broader Market Analysis**
*Original source: Action Forex (https://www.actionforex.com/technical-outlook/usdcad-outlook/605678-usd-cad-daily-outlook-2187/), expanded with insights and additional data from Bloomberg, ForexLive, and Investing.com.*
The USD/CAD (U.S. Dollar/Canadian Dollar) pair remains under significant scrutiny as market participants focus on technical indicators, macroeconomic developments, oil prices, and central bank policy differentials. On June 6, 2024, the pair exhibited limited movement during the Asian session, with slight downside pressure keeping the current short-term bias cautiously bearish.
This article expands on the key technical themes from the original publication on Action Forex while including macroeconomic indicators, policy expectations from the Bank of Canada (BoC) and the Federal Reserve (Fed), and commodity-related influences, primarily Canadian crude oil exports. Overall, we aim to provide a comprehensive, 1000-word breakdown of the USD/CAD pair’s outlook using recent news and chart patterns.
## Key Takeaways from Action Forex Technical Update
As stated in the June 6 article from Action Forex:
– The USD/CAD pair continues to consolidate slightly below the 1.3700 mark.
– The intraday bias stays neutral as the pair trades within a narrow range.
– A downside break of the 1.3580 support level could resume the larger decline from the 1.3845 resistance top.
– If this occurs, a retest of the 1.3450 zone is likely, which coincides with the 61.8 percent Fibonacci retracement of the 1.3092 to 1.3845 upward move.
– On the upside, a firm break above the 1.3760 resistance will confirm the rebound from 1.3580 and potentially target the 1.3845 high again.
This technical configuration sets the groundwork for assessing short- to medium-term market trends.
## Expanded Analysis: USD/CAD Technical View
Based on a broader interpretation of market charts and added insights, the following technical details are currently critical:
### Support and Resistance Levels
– **Immediate Resistance**: 1.3700, reinforced by price congestion and technical rejection on multiple recent attempts.
– **Intermediate Resistance**: 1.3760, a level that must be broken to resume any substantial bullish trajectory.
– **Psychological Resistance**: 1.3800, a level watched closely by traders due to its proximity to the yearly highs.
– **Major Resistance**: 1.3845, the top of 2024 so far and a major hurdle for upward momentum.
– **Immediate Support**: 1.3580, key short-term level, a breach here indicates bearish momentum.
– **Intermediate Support**: 1.3500, representing psychological and round-number technical support.
– **Major Support**: 1.3450, near the 61.8% Fibonacci retracement and acts as strong demand.
### Price Momentum and Indicators
– **MACD**: The Moving Average Convergence Divergence suggests waning bullish momentum as the histogram turns flat.
– **RSI (Relative Strength Index)**: Currently hovers near the 50.0 midpoint, indicating indecision among traders.
– **Stochastic Oscillator**: Shows bearish divergence on the 4H chart, typically a signal for short-term correction.
The technical framework signals foundation-level consolidation in the near term unless triggered by decisive macroeconomic actions or data releases.
## Macroeconomic Overview Affecting USD/CAD
### 1. Divergence in Central Bank Policies
The latest communication from the Bank of Canada (BoC) and the Federal Reserve reveals diverging monetary policy paths.
– **Bank of Canada**: On June 5, 2024, the BoC cut interest rates by 25 basis points, bringing the overnight
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