Is this an opportunity on USD/CAD ?The price has invalidated the uptrend in the very short term, going to break down the level placed at 1.317, that was a static support that should have rebounded the price and continue the long trend. After Powell’s words, investors continued to sell the US dollar, making it weaken against all the majors.
The Fed has been clear: at this moment it is difficult to think about further increases in interest rates, as the US economy is responding well at these levels (2.25 / 2.50%). At least for the entire first half of 2019 it will be difficult for him to return to his steps.
The market will be hostile to a strengthening of the US currency.
This pair is particularly uncertain because the Bank of Canada also does not intend to change its monetary policy, so it is very likely that it will continue to proceed sideways for the next few months in the channel between the support at 1,298 and resistance at 1.33.
It is advisable to remain flat until the fundamentals change or one of the two levels mentioned above is broken.
It should be noted that on a daily tf, the price has reached the dynamic support identified by the EMA200, which seems to have held: it could be a good opportunity to enter the market from here with target the level of minor importance placed at 1.326 with a “buy“ order.
