🔔🔔🔔USD/CAD news:
👉The U.S. central bank decided to keep its benchmark interest rate unchanged for the second consecutive meeting on Wednesday, amid growing concerns about an economic slowdown and the possibility of persistently high inflation. Federal Reserve Chair Jerome Powell emphasized the high level of uncertainty stemming from President Donald Trump's major policy shifts, adding that Fed officials may wait for more clarity on their economic impact before taking action.
👉New economic forecasts indicate that Fed officials have lowered their growth projections for this year but still anticipate an additional half-percentage-point rate cut by 2025. Meanwhile, the more hawkish tone on interest rates from Fed officials since December has provided some support for the U.S. dollars (USD).
👉On the other hand, crude oil prices have rebounded due to escalating geopolitical tensions in the Middle East, which could strengthen the commodity-linked Canadian dollar (CAD) and weigh on the USD/CAD pair. It is worth noting that Canada is the largest oil exporter to the United States, and higher crude oil prices typically have a positive impact on the value of the CAD.
Personal analysis:
👉In the short term, this pair is still maintaining its upward momentum due to economic data
👉However, RSI (1H) is in the extreme overbought zone near 80, so the buyers are showing signs of slowing down and the market is likely to reverse in the short term.
👉Consider strong support zones to buy at the best price for you
👉Analyze based on resistance - support levels and Fibonacci combined with trend lines and EMA to come up with a suitable strategy
Plan:
🔆Price Zone Setup:
👉Buy USD/CAD 1.4350 - 1.4340
❌SL: 1.4315 | ✅TP: 1.4390 - 1.4430 - 1.4470
FM wishes you a successful trading day 💰💰💰
👉The U.S. central bank decided to keep its benchmark interest rate unchanged for the second consecutive meeting on Wednesday, amid growing concerns about an economic slowdown and the possibility of persistently high inflation. Federal Reserve Chair Jerome Powell emphasized the high level of uncertainty stemming from President Donald Trump's major policy shifts, adding that Fed officials may wait for more clarity on their economic impact before taking action.
👉New economic forecasts indicate that Fed officials have lowered their growth projections for this year but still anticipate an additional half-percentage-point rate cut by 2025. Meanwhile, the more hawkish tone on interest rates from Fed officials since December has provided some support for the U.S. dollars (USD).
👉On the other hand, crude oil prices have rebounded due to escalating geopolitical tensions in the Middle East, which could strengthen the commodity-linked Canadian dollar (CAD) and weigh on the USD/CAD pair. It is worth noting that Canada is the largest oil exporter to the United States, and higher crude oil prices typically have a positive impact on the value of the CAD.
Personal analysis:
👉In the short term, this pair is still maintaining its upward momentum due to economic data
👉However, RSI (1H) is in the extreme overbought zone near 80, so the buyers are showing signs of slowing down and the market is likely to reverse in the short term.
👉Consider strong support zones to buy at the best price for you
👉Analyze based on resistance - support levels and Fibonacci combined with trend lines and EMA to come up with a suitable strategy
Plan:
🔆Price Zone Setup:
👉Buy USD/CAD 1.4350 - 1.4340
❌SL: 1.4315 | ✅TP: 1.4390 - 1.4430 - 1.4470
FM wishes you a successful trading day 💰💰💰
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✅ t.me/+Y9T5_BwC7_JhMWM1
Join now !!!!
Channel: signals - knowledge and FOREX comments
Join now !!!!
Channel: signals - knowledge and FOREX comments
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.