Technical Outlook

-Gold may find support at $2,145, with potential declines towards $2,115 and $2,084 if breached. Conversely, a bullish breakthrough can lead to retesting highs near $2,195.

-The USDCAD pair faces a pivotal resistance at 1.3540, likely attracting sellers aiming for the 1.3360 support level. On the other side, buyers are eyeing a break above the 1.3540 resistance to reach the 1.3620 threshold.

US (USD): Fed Interest Rate Decision

Federal Open Market Committee (FOMC) members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

A higher than expected rate is positive/bullish for the USD, while a lower than expected rate is negative/bearish for the USD.

The previous reading was 5.50% , in line with the expectations. The upcoming report is due on March 20, 2024 at 18:00 GMT. Its forecast also stands at 5.50%.

XAUUSD Technical Analysis:

Gold’s price has shown a slight rebound from its lowest point in over a week, observed earlier this Monday. From a technical standpoint, should there be any further decreases, we anticipate finding support around the $2,145 zone. A fall below this threshold could see the price of gold hasten its decline towards another significant support level, located around 38.2 Fib level, $2115, and further to 2.084 zone.

Conversely, the price can climb to the resistance at the $2,175 area. Overcoming this barrier could pave the way for XAUUSD to test its recent high near $2,195, achieved last week. A push beyond the $2,200 level might then initiate a continuation of the upward trend that has been evident since the start of the month.

Pivot Points: XAUUSD

CA (CAD): Canada Consumer Price Index (CPI) MoM

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

A higher than expected reading should be taken as positive/bullish for the CAD, while a lower than expected reading should be taken as negative/bearish for the CAD.

The previous reading was 0.0 %, worse than the expected 0.4%. The next report is due on March 19, 2024 at 12:30 GMT. Its forecast stands at 0.6%.

USDCAD Technical Analysis:

Examining the daily chart for the USDCAD pair, we observe a retraction to a pivotal resistance point at 1.3540, instigated by the release of robust US economic data. This juncture is critical, as it is anticipated to attract sellers, who are likely to establish positions, aiming for a descent to the 1.3360 support.

On the other side, buyers will be keen on witnessing the price surpass resistance, setting the stage for an ascent towards the 1.3620 threshold.

Pivot Points: USDCAD

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