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Usdcadsell

USDCAD Potential ReversalIn my opinion, USDCAD appears to be showing signs of a potential reversal as it forms a falling wedge pattern on the 1-hour timeframe, with the current price finding support at a specific level. The falling wedge pattern typically indicates a bullish reversal, suggesting that the downward momentum may be weakening. Considering this pattern and the support level, traders might consider a potential long position on USDCAD. However, it's important to manage risk effectively. Setting a stop loss at 1.3276 can help limit potential losses if the market moves against the anticipated reversal. Additionally, a take profit level of 1.3439 can be considered as a target to capture potential gains. Looking forward to read your opinion about it.
Long
by TopgOptions
Is it time to add buys in USD/CAD? Detailed analysis below!Dear traders, after Bank of Canada's rate event yesterday, USD/CAD dropped to the 1.3321 level. However, the fall was arrested as it is a strong support level . Based on the current price action, it seems the 1.3320 support level would continue to hold. So, if price action becomes bullish at this level and the support level stays unbroken, traders can consider going long USDCAD@1.3320 with SL below 1.3250 and TP at 1.3650 .
Long
by YourLazyTrader
USD/CAD: Consolidation Calm Before the Storm? The USD/CAD has been consolidating since late last Friday. Key levels include 1.346 and 1.345 for the upper bound and 1.341 and 1.340 for the lower bound. The market appears to be in the middle of the storm that might be unleashed after the Bank of Canada’s (BoC) interest rate decision on Wednesday. In January, the BoC made history by being the first major global central bank to stop its rate-hiking cycle and has kept rates unchanged at its last two policy meetings. However, the economy's unexpectedly robust performance since then has placed the bank in a challenging position and will test its determination to maintain a neutral stance. After declining from its peak at 8.1% in 2022, inflation in Canada unexpectedly experienced its first increase in 10 months, surging to 4.4% in April from 4.3% in March. The increase is being attributed to the recent rebound in Canada's housing market. The current market consensus is for an approximately 40% to 45% chance of a 25-basis-point interest rate hike on Wednesday. According to some, this is underestimating the possibility of a rate hike. Which means that the lower bounds of the current consolidation band could easily be tested (and broken) in the lead up to the interest rate decision. On the other side of the trade, the US dollar faced obstacles as it was revealed that the US services sector experienced minimal growth in May, primarily due to a slowdown in new orders. This news brought an end to the initial surge in the USD, which was triggered by incredibly robust job growth.
Editors' picks
by BlackBull_Markets
3
USDCAD: US Dollar's position as the primary global reserve curreThe Return of the Sellers Over the past two decades, the US Dollar's market share has declined from 71 percent to 59 percent, and it may continue to reduce further in the future. This has a negative impact on the United States since global currency usage is a zero-sum game. When other currencies like Yuan, real, or Rupee are used in global trade, the US Dollar is left out. If other currencies gain more prominence, it may compromise America's dominance in the global market.
Short
by Jiren-SphynChannels
USD/CAD Reacts to CPI, Debt Ceiling Woes Two big events affecting the USD/CAD pair include the CPI reading from Canada yesterday as well as the ongoing debt ceiling crisis in the US. In April, the monthly Canadian headline CPI surged by 0.7%, resulting in an annual rate of 4.4% compared to the previous 4.3%. This increase exceeded the consensus estimates by three-tenths of a percent in both instances. Consequently, the USD/CAD experienced a 0.4% decrease, reaching 1.3404, before rebounding to a high of 1.3535 USD/CAD has now also breached its 200-day simple moving average on the downside, closing below it to reinforce the bearish signal. Strengthening this assertion is that the Bank of Canada had recently put a halt to its tightening campaign, having raised interest rates by 425 basis points since March 2022. However, they indicated that this pause was dependent on the inflation outlook aligning with the forecasted trajectory. It is unlikely that this week's CPI data meets this requirement. Offsetting the positive news for the Canadian dollar is the prevailing optimism in the United States regarding the government's ability to avoid defaulting on its debt. Following emergency discussions at the White House, President Joe Biden and Republican leaders cautiously expressed hope for a potential agreement to raise the US debt ceiling. The agreement must be reached and approved by both houses of Congress before the federal government exhausts its funds to cover expenses, which could occur as soon as June 1 (only two weeks away). Despite House of Representatives Speaker Kevin McCarthy stating that the two parties remain considerably apart, he believes that a deal could be achieved by the end of the current week.
by BlackBull_Markets
USDCAD: Nice entry for Buy-er!Fundamental Overview If the Federal Reserve meeting were held today, it is likely that they would maintain the current interest rates due to the ongoing uncertainty surrounding the banking sector. However, it's important to note that market conditions can change rapidly. If the upcoming weekend remains stable without any urgent need to rescue failing banks, there is a good chance of a 25 basis points rate hike. The Federal Reserve tends to increase rates until economic instabilities arise. In the case of only SVB, persistently high inflation could trigger further rate hikes. This would result in a stronger US Dollar, which could eventually lead to a decline in stock markets once the relief rally surrounding no new bank failures subsides. Plan trade in the intro
Long
by Sphyn-Trader