Fed Pause Sparks Rally & Support Standoffs in USD/CAD & GBP/CAD

Author

FX Rocket Profits
July 24, 2025

Macro Resilience Meets Key Support Tests

Markets rallied after U.S. PPI cooled faster than expected in June, reinforcing bets on a Fed pause and igniting a broad risk‐on move. The dollar steadied once Powell firing rumors faded, while equities and Bitcoin climbed and Treasuries rallied. Against this backdrop of macro strength, USD/CAD is pausing its downtrend at a triangle support around 1.3600—an inflection that could fuel a bounce—while GBP/CAD is carving a double bottom at its long-term floor near 1.8400, testing the setup for a bullish reversal. Merging these big-picture cues with pinpoint technical levels equips you to strike precisely as momentum shifts.

⚡ Daily Broad Market Recap – July 23, 2025

  • U.S. PPI rose less than forecasts, sending 10-year Treasury yields lower and sparking a “good news is good news” equity rally.

  • The dollar regained composure after Fed chair firing whispers subsided, buoying USD/JPY and USD/CHF.

  • Bitcoin reclaimed $120K while gold and oil found fresh bids on easing rate-cut fears.

📊 USD/CAD Is Retesting a Triangle Support Zone

  • USD/CAD has dipped to 1.3600, aligning with both a mid-June trendline floor and the S2 pivot point, marking the triangle’s base.

  • A confirmed hold here could trigger a rally toward the 1.3668 pivot or the 1.3721 zone, while a clean break below 1.3600 opens the path to new lows.

📉 GBP/CAD Reversal Pattern at Long-Term Support

  • GBP/CAD is forming a complex double bottom around 1.8400 after a dovish BOE surprise dragged prices to this minor psychological floor.

  • The neckline at 1.8480–1.8500 now stands as the gateway: a breakout could target 1.8550 and 1.8610, while rejection risks a retest of 1.8340.

Today’s issue fuses a resilient macro pulse with two high-probability chart setups. From a GDP-calmed dollar rally to USD/CAD’s triangle floor and GBP/CAD’s double-bottom reversal, these articles arm you with both the overarching narrative and the tactical price levels required to seize the next move. Trade with confidence by aligning your entries at these pivotal supports.

Happy Trading!

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