Challenges Ahead for USD/CAD Bulls Last night, the Bank of Canada decided to raise its interest rate by 25 basis points, bringing it to 4.75%. This move came after a pause in the tightening campaign during the two previous meetings. As a result, borrowing costs reached a level not seen in 22 years. Because most of the market, approximately 60%, expected interest rates to remain unchanged, the Canadian dollar (CAD) strengthened against the US dollar (USD) following the news.
The USD experienced a decrease of 0.23% against the CAD. The initial reaction in the USD/CAD exchange rate showed an 80-pip drop, bottoming out at 1.3320. However, the possibility of an additional rate increase by the Federal Reserve in July likely limited the losses. The upcoming release of US inflation data next week, coinciding with the Federal Open Market Committee (FOMC) meeting, may provide limited insights into the validity of this possibility.
If there are any further upward movements, reaching the area around 1.3400 could present a challenge for those expecting gains. This is because the 50-day, 100-day, and 200-day moving averages (MAs) on the 30-minute chart are all moving in their own lanes, indicating that the short-term price won't be fighting the long-term downtrend just yet. The April 14 low of 1.3300 and the aforementioned 1.3320 could be key if the pairs move lower.
Loonielong
USD/CAD (To Infinity and Beyond?)View On USD/CAD (8 Dec 2022)
There is something that you oughta know.
The recent run up in the stock markets and fall of USD are fuelled by the expectation/hope on "the pivot" by the FED and the real answer will be on the FED rate decision of the next week.
If the FED fails to do pivoting, I expect the stock market will fall and USD will resume it's UP trend.
And we are already seeing the starting of it.
If the FED does not pivot, it shall send USDCAD to retest the previous high and beyond.
DYODD, all the best and read the disclaimer too.
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USDCAD: Dollar prevails above all!USDCAD
Intraday - We look to Buy at 1.2900 (stop at 1.2840)
Previous support located at 1.2900. Previous resistance located at 1.2950. Risk/Reward would be poor to call a buy from current levels. A move through 1.3000 will confirm the bullish momentum.
Our profit targets will be 1.3050 and 1.3100
Resistance: 1.3000 / 1.3050 / 1.3100
Support: 1.2900 / 1.2850 / 1.2800
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DXY/USDCAD/EURUSD - REVERSAL EXPECTED?DXY - Dollar Index has approached to its 5 year high of 103 - 104 with strong monthly candle.
USDCAD - is approaching to the 2021 resistance level which it breaks during Covid-19 period.
EURUSD - has been testing 2015/16 lows after breaking Covid-19 lows.
Both the pairs are heavily dependent Dollar Index which remains in limelight after FED Interest rates expectations.
What should we expect from here?
Since all three are at important levels which can be the reversal points or continuation of the main trend. We have been waiting for DXY to make a move first. If we have closing above resistance with FED rate hike in May'22 the trend will continue.
Let us know what do you think in comment sections.
USD/CAD Signal - USD 5 Year Note Auction - 25 Aug 2021USDCAD has made a pullback from recent highs prior to the USD 5 Year Note Auction, which reveals the yields on the government backed security. Technically the pair has pulled back into the trendline and the moving averages, which are currently in a bullish cross, and the key pivot level. We anticipate a rebound back up into the 1.2770 level.
GBP/CAD sets up >1000 Pip Play! *Yellow MA = 200 EMA | Blue MA = 100 EMA
In this video, I go over the approaching support level for OANDA:GBPCAD and the potential play to the top of the consolidation box set after the reversal we see from January 2016 - October 2016. A play from the support to resistance is well over 1000 pips and has two different opportunities:
1. We bounce off of more recent support
2. We bounce off of all-time low
I'm looking for both options to play to the top of the box and move price action within that same range again. This support is extremely strong and could lead to a very profitable play, especially since the RSI shows us the pair is oversold with bullish divergence, characteristics of previous plays in this zone. The resistance I outline is from old support and fib levels, but both this resistance and fib levels have been broken on previous bounces off the same support.
Good luck traders!
BULLISH RUN LOONIEAssalamualaikum and cheers !
I'm expecting a 3-5-5 structure is going to happen for Loonie. Looks like current 5 structure is already completed, next 5 structure will take action. Should support level 1.289 hold and as long as market stays above 1.281, I biased bullish will continue its run with optimum target @ 1.37357
Hope its helps ! Thanks for reading !
Buying The USD/CAD From Macro Fibonacci SupportIn the event the USD/CAD closes negative, it will mark the third straight red candlestick on the daily chart. July has extended the negative sentiment of late June, with price seemingly on a collision course with the 1.3000 handle. If we see a continued fall, then a buy from just above the macro 62% Fibonacci retracement is good trade location to the bull.
Here is the trade:
1)Entry: Buy 1.3036
2)Stop Loss: 1.2994
3)Profit Target: 1.3082
4)Risk vs Reward Ratio: 1/1
The optimal timing for this trade is before the Monday forex session close. However, the recommendation will remain valid until Wednesday’s BoC Interest Rate Announcements. If it hasn’t gone live by that time, pull the orders.
GBPUSD - bounce zone for longHere is the landing zone in my opinion - looking for a bounce from the bottom of the green polygon to open a long at the top, stop loss would be the height of the polygon at the given time it plays out. After all April is a good month for GBP every year, so time to see it play out next week. Please note this not a trade recommendation - purely my personal view
What are your view on next week for GBPUSD? let me know
Long live the loonieThe CAD has been rallying in the bast couple of weeks
last week it finally broke the 1.3 level and stayed above it for to close off the week at 1.309
today started off with what looks like profit taking, but the market did not push the currency further down beyond the 1.3 mark, an indication that the market believes the loonie still has some steam on it
the upward trend looks to be a strong one, you can see a wide angle between the 9 period MA and 21 period MA
Next stop for the loonie is 1.32, if it breaks this level the next resistance level would be at 1.35
if the trend slows down and reverses, an important support will be 1.29 and the next support level is 1.264