USDCAD Sell Setup Towards 1.33 with Explanation!
Updated
The USD/CAD pair is trading laterally near 1.3440 after a sharp descent from the psychological resistance of 1.3500 in the early hours of the European session. The Canadian Dollar (CAD) showed limited activity on Monday to start the trading week with subdued momentum across the major currency landscape before a sudden decline against the US Dollar (USD). CAD traders will closely watch Wednesday's interest rate decision from the Bank of Canada (BoC), and markets brace for an eventful Friday to conclude the week with a fresh release of the US Personal Consumption Expenditures (PCE) price index. The latest figures for Canada's New Housing Price Index are expected in the early hours of Tuesday's US session, but their impact is anticipated to be limited. The Canadian Dollar lacked significant momentum on Monday before extending short-term losses against most of its counterparts. Markets are proceeding cautiously to start the new trading week but remain near the high side after US stocks reached record prices last Friday. The Bank of Canada is widely expected to keep rates steady at 5%, and investors will be watching the subsequent press conference. According to a Reuters survey, 22 out of 34 economists consulted predict that the first BoC rate cut will occur in June, while the remaining 12 indicate April. In December, derivatives markets predicted a 60% probability of the first BoC rate cut in March. This week will see interest rate decisions from three central banks, but market sentiment is likely to depend on central bank press conferences and statements, with hopes of global rate cuts widely disappointed in recent weeks. Furthermore, geopolitical concerns are keeping crude oil bids high, but accumulations in refined products are becoming hard to ignore as global fossil fuel demand prospects begin to fade. The upcoming OPEC meeting will be interesting to assess the potential strength of Brent and consequently the Canadian Dollar, which, according to the bearish channel depicted on the chart, could decline towards 1.33 after a rebound that appears to be concluding these days around the reversal level of 1.3480. Wishing everyone successful trading, greetings from Nicola.
Note
The Cad is very strong, waiting for the BOC today to see if the price could take a signifcant impulse towards 1.33. However the price did a perfect retest on the reversal zone.Note
USDCAD is changing the structure from short to long on H4...
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