USD/CAD expectations

The USD/CAD pair has been trading in a range over the past few weeks, and it looks like it could be gearing up for a breakout in the near future. The pair has been trading between the 1.25 and 1.27 levels, and it will be interesting to see which way it breaks.

There are a few factors that could influence the direction of the breakout. The first is the strength of the US dollar. If the dollar continues to strengthen, we could see the pair break below the 1.25 level. On the other hand, if the Canadian dollar strengthens, we could see the pair break above the 1.27 level.

Another factor to consider is the price of oil. Canada is a major oil exporter, so the price of oil can have a big impact on the value of the Canadian dollar. If oil prices continue to rise, we could see the Canadian dollar strengthen and the pair break above the 1.27 level.

Finally, the outcome of the upcoming Bank of Canada interest rate decision could also influence the direction of the breakout. If the Bank of Canada raises interest rates, we could see the Canadian dollar strengthen and the pair break above the 1.27 level.

Overall, there are a number of factors that could influence the direction of the USD/CAD pair in the near future. Traders should keep a close eye on these factors and be prepared for a potential breakout in either direction.