It seems just like the vary help on USD/CAD held as soon as once more!
Can this recent bounce make all of it the best way as much as the long-term high?
Check out these ranges I’m watching on the every day time-frame.
Greenback bulls sprang again to motion and defended the underside of USD/CAD’s every day vary, because the FOMC minutes revealed that policymakers are in no rush to chop rates of interest for now.
Although the dot plot projections launched throughout the Fed’s December determination signaled scope for 3 rate of interest cuts this 12 months, the transcript of their huddle indicated that “the actual policy path will depend on how the economy evolves.”
Do not forget that directional biases and volatility circumstances in market worth are usually pushed by fundamentals. If you happen to haven’t but finished your fundie homework on the Loonie and the U.S. greenback, then it’s time to take a look at the financial calendar and keep up to date on every day elementary information!
Or if you happen to simply acquired again to your buying and selling desk after the vacations, you too can try our 2024 FX Outlook to see what you possibly can count on for the 12 months forward.
Technical indicators are additionally suggesting that the ground is extra more likely to maintain than to interrupt.
The 100 SMA is above the 200 SMA to mirror the presence of bullish vibes whereas Stochastic is already pulling up from the oversold area to sign a return in upside strain. The oscillator has loads of room to climb earlier than indicating exhaustion amongst patrons, so USD/CAD might hold following go well with because it rises.
For now, the pair is hitting a near-term roadblock on the pivot level stage (1.3346), however a continuation of the rally previous this level might attain the subsequent goal at R1 (1.3515) close to the shifting averages. Stronger bullish momentum might take it increased to R2 (1.3789) near the prime quality.
However, if present ranges maintain as an upside barrier, USD/CAD might retreat to the vary help and even break decrease to S1 (1.3074) or S2 (1.2904).
Higher hold a watch out for the subsequent main U.S. catalyst (December 2023 NFP report) when buying and selling this one!
