Yesterday’s headlines acquired merchants sellin’ the U.S. greenback towards main counterparts just like the Loonie!
Will this result in USD/CAD extending its month-long downtrend?
Right here’s what we’re !
USD/CAD 4-hour Foreign exchange Chart by TradingView
In case you missed it, the U.S. greenback has been on the again foot recently, weighed down by recent Center East tensions after the U.S. acquired concerned over the weekend, a drop in 10-year Treasury yields, and a handful of dovish remarks from FOMC members.
In the meantime, the Canadian greenback acquired a short elevate from larger oil costs, however that pop light simply as shortly. Potential profit-taking and a shift towards improved danger sentiment dragged the comdoll decrease by the tip of the day.
Will the anti-dollar themes persist within the subsequent buying and selling classes?
Do not forget that directional biases and volatility situations in market value are usually pushed by fundamentals. If you happen to haven’t but carried out your homework on the U.S. and Canadian {dollars}, then it’s time to take a look at the financial calendar and keep up to date on each day basic information!
USD/CAD pulled again from the 1.3800 mark, and it’s no shock once you have a look at the chart.
See, that stage strains up with the 4-hour chart’s 200 SMA, R1 Pivot Level at 1.3806, and the 78.6% Fib retracement of the early June dip. It’s additionally proper on the high of the ascending channel that’s been in play since early Could.
If the pair breaks beneath the 1.3700 assist space, it opens the door for a slide towards 1.3650 and even the 1.3500 lows from earlier this month.
But when greenback bulls maintain the road at 1.3700, and we begin seeing inexperienced candlesticks stack up, then we might be one other run at 1.3800, perhaps even the 1.3900 earlier space of curiosity.
Whichever bias you find yourself buying and selling, don’t neglect to follow correct danger administration and keep conscious of top-tier catalysts that would affect total market sentiment.
Disclaimer:
Please bear in mind that the technical evaluation content material offered herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one facet of a complete buying and selling technique. The technical setups mentioned are meant to focus on potential areas of curiosity that different merchants could also be observing. Finally, all buying and selling choices, danger administration methods, and their ensuing outcomes are the only accountability of every particular person dealer. Please commerce responsibly.
