The rise in the US Dollar Index has led to a rebound against several currencies such as the Canadian dollar, the euro, and the Japanese yen, shifting the medium-term bearish trend into a bullish one. One of the pairs that could benefit from the USD’s strength is the USD/CAD.
After the USD/CAD pair recorded a new high by breaking the last lower high, the recent pullback is considered a correction within the upward trend. The price is likely to rise from the 1.35725 level toward the 1.36567 target.
However, a drop below the 1.35397 level and a 4-hour candle closing beneath it would invalidate the bullish scenario.
Note:
This pair is trading in a general downtrend on the daily timeframe. However, the above analysis is specifically based on the 4-hour chart for the medium-to-short-term outlook.
Markets are also closely watching the Federal Reserve meeting later today, as its outcome will have a direct impact on all USD-related currency pairs.
After the USD/CAD pair recorded a new high by breaking the last lower high, the recent pullback is considered a correction within the upward trend. The price is likely to rise from the 1.35725 level toward the 1.36567 target.
However, a drop below the 1.35397 level and a 4-hour candle closing beneath it would invalidate the bullish scenario.
Note:
This pair is trading in a general downtrend on the daily timeframe. However, the above analysis is specifically based on the 4-hour chart for the medium-to-short-term outlook.
Markets are also closely watching the Federal Reserve meeting later today, as its outcome will have a direct impact on all USD-related currency pairs.
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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.
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.