USD/CAD: the US dollar has returned to decline
Current trend
During the Asian session, the USD/CAD pair shows ambiguous trading dynamics, consolidating near the level of 1.2680 and local lows of March 3.
Yesterday, the instrument declined, despite the publication of the US Federal Reserve meeting minutes. As expected, the US regulator raised interest rates by 25 basis points to 0.5% and also signaled the possibility of starting to reduce its balance sheet of almost 9T at one of the next meetings. When exactly this will be done, the head of the regulator, Jerome Powell, did not say. He noted that the consequences of the military conflict in Ukraine would have consequences for both the world and the national economy, but it is difficult to predict them. The agency has launched a cycle of monetary tightening, which should cover 6 or 7 rate hikes in 2022. According to the authorities' forecasts, it will contribute to a sharp decrease in inflation as early as next year, although now the figure is significantly higher than the target of 2%.
In turn, strong national macroeconomic statistics published on Wednesday provided significant support to the Canadian dollar. February's core consumer price index rose by 0.8%, which was better than market expectations of 0.6%. Inflation accelerated from 4.3% to 4.8% YoY, ahead of analysts' forecasts of 4.5%. The overall annual rate rose from 5.1% to 5.7%. In January, the growth of wholesale sales accelerated from 1% to 4.2%, while the forecast was 3.9%.
Support and resistance
On the daily chart, Bollinger bands slightly decrease. The price range widens from the bottom while remaining spacious enough for the current level of activity in the market. The MACD indicator falls, keeping a strong sell signal (the histogram is below the signal line). Stochastic shows similar dynamics. However, it is quickly approaching its lows, indicating that USD may become oversold in the ultra-short term.
Resistance levels: 1.2700, 1.2750, 1.2788, 1.2812.
Support levels: 1.2650, 1.2600, 1.2558, 1.2500.
During the Asian session, the USD/CAD pair shows ambiguous trading dynamics, consolidating near the level of 1.2680 and local lows of March 3.
Yesterday, the instrument declined, despite the publication of the US Federal Reserve meeting minutes. As expected, the US regulator raised interest rates by 25 basis points to 0.5% and also signaled the possibility of starting to reduce its balance sheet of almost 9T at one of the next meetings. When exactly this will be done, the head of the regulator, Jerome Powell, did not say. He noted that the consequences of the military conflict in Ukraine would have consequences for both the world and the national economy, but it is difficult to predict them. The agency has launched a cycle of monetary tightening, which should cover 6 or 7 rate hikes in 2022. According to the authorities' forecasts, it will contribute to a sharp decrease in inflation as early as next year, although now the figure is significantly higher than the target of 2%.
In turn, strong national macroeconomic statistics published on Wednesday provided significant support to the Canadian dollar. February's core consumer price index rose by 0.8%, which was better than market expectations of 0.6%. Inflation accelerated from 4.3% to 4.8% YoY, ahead of analysts' forecasts of 4.5%. The overall annual rate rose from 5.1% to 5.7%. In January, the growth of wholesale sales accelerated from 1% to 4.2%, while the forecast was 3.9%.
Support and resistance
On the daily chart, Bollinger bands slightly decrease. The price range widens from the bottom while remaining spacious enough for the current level of activity in the market. The MACD indicator falls, keeping a strong sell signal (the histogram is below the signal line). Stochastic shows similar dynamics. However, it is quickly approaching its lows, indicating that USD may become oversold in the ultra-short term.
Resistance levels: 1.2700, 1.2750, 1.2788, 1.2812.
Support levels: 1.2650, 1.2600, 1.2558, 1.2500.
إخلاء المسؤولية
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إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.