Solid News

USDCAD Trades within a Wide Ascending Channel

8/9/2022 1:41 PM

The USD/CAD pair is correcting downwards around 1.2857 as investors prefer not to make big trades until the release of important macroeconomic data on Wednesday.

The dynamics of the Canadian dollar are predetermined by statistics on the labor market, which is at its lowest levels since 1976: according to the report for July, the outflow of workers amounted to 31.0K people, and the number of open vacancies exceeded 1.0M. Considering the current crisis in the sector, the Bank of Canada will continue to tighten monetary policy and raise interest rates by 50 basis points, increasing the debt burden on households due to the rise in the cost of loans.

The US currency is holding in the range of 106.000–106.500 in the USD Index amid traders' expectations regarding tomorrow's publication of July data on consumer price inflation. Since the previous report, there have been no major changes in the indicators, and one cannot count on a significant decrease in values: according to analysts, core inflation, excluding food and fuel prices, will rise to 6.1% from 5.9% a month earlier. At the same time, experts predict a decline in full inflation to 8.7% from 9.1%, which raises doubts among market participants.

On the global chart of the asset, the trading instrument is moving within a wide ascending channel with dynamic boundaries 1.2600–1.3200, correcting in the middle of the corridor. Indicator Alligator's EMA oscillation range signals a possible growth, and the AO oscillator histogram forms rising bars in the sell zone.

Resistance levels: 1.2940, 1.3075. | Support levels: 1.2784, 1.2644.

Find Us
First Floor, First St Vincent Bank LTD Building James Street Kingstown St Vincent and the Grenadines
Call Us
+1 415 367 3742

Solid ECN Securities is an international brand formed and authorized in Saint Vincent and the Grenadines with the registration number 1390 LLC 2021 committed to offering the best possible trading experience. Disclosure: Please note that foreign exchange and other leveraged trading involve a significant risk of loss. It is not fit for all investors and you should make sure you realize the risks involved, seeking independent advice if necessary.
Solid ECN Securities and it affiliates don't accept applications from Indonesia, Egypt, Australia, Bonaire, Curaçao, East Timor, Liberia, Saipan, Russia, Sint Eustatius, Tahiti, Turkey, Guinea-Bissau, South Sudan and other restricted countries.
Copyright All Right Reserved 2023