USDCAD Technical Evaluation – We’re close to key resistance ranges

USD

• The Fed left interest rates unchanged as anticipated on the final assembly with principally no
  change to the assertion. The Dot Plot nonetheless confirmed three charge cuts for 2024 and
  the financial projections have been upgraded with development and inflation larger and the
  unemployment charge decrease.
• The US CPI beat expectations for the third
  consecutive month, whereas the US PPI got here according to forecasts.
• The US NFP beat expectations throughout the board
  though the common hourly earnings got here according to forecasts.
• The US ISM Manufacturing PMI beat expectations by a giant margin with
  the costs element persevering with to extend, whereas the US ISM Services PMI missed with the value index dropping to
  the bottom stage in 4 years.
• The US Retail Sales beat expectations throughout the board by a
  large margin with constructive revisions to the prior figures.
• The market now expects the primary charge reduce in
  September.

CAD

• The BoC left interest rates unchanged at
  5.00% as anticipated altering a line within the assertion that indicated much less concern
  about inflation and thus the potential for a reduce in June if the development stays
  intact.
• The most recent Canadian CPI got here according to expectations though
  the underlying inflation measures eased additional.
• On the labour market aspect, the newest report missed
  expectations throughout the board though we noticed an uptick in wage development which is
  one thing that the BoC is watching intently.
• The Canadian Manufacturing PMI
  improved barely in March whereas the Companies PMI weakened additional. Each the
  measures stay in contractionary territory.
• The market expects the primary charge
  reduce in June.

USDCAD Technical Evaluation –
Every day Timeframe

On the every day chart, we will see that USDCAD got here
near the highest of the one-year vary across the 1.3862 stage however ultimately
rolled off again into the 1.37 deal with. We will see that from a danger administration
perspective, the patrons could have a significantly better danger to reward setup across the
1.3620 stage the place we will discover the confluence of the
earlier resistance turned support and the
61.8% Fibonacci retracement stage.
The sellers, however, will wish to see the value breaking beneath the
main trendline to show
the development round and goal a drop all the way in which again to the underside of the vary
across the 1.3225 stage.

USDCAD Technical Evaluation –
4 hour Timeframe

On the 4 hour chart, we will see that the value
yesterday broke beneath the minor upward trendline turning the bias extra bearish
and opening the door for a drop into the 1.3620 support. We now
have a minor downward trendline and the crimson 21 moving average defining
the present bearish momentum. That is the place we will anticipate the sellers to step
in with an outlined danger above the trendline to place for a drop into the
1.3620 assist with a greater danger to reward setup. The patrons, on the opposite
hand, will wish to see the value breaking larger to invalidate the bearish
setup and place for a rally into new highs.

USDCAD Technical Evaluation –
1 hour Timeframe

On the 1 hour chart, we will see that we
have additionally the Fibonacci retracement ranges on this timeframe including some further
confluence to the bearish setup across the trendline. Be careful for the US
Flash PMIs knowledge at the moment as a result of it is going to be a market shifting occasion.

Upcoming Occasions

Today we get the US Flash PMIs. Tomorrow, we’ve got
the Canadian Retail Gross sales. On Thursday we’ll see the newest US Jobless Claims
figures, whereas on Friday we conclude the week with the US PCE report.