Solid News

The USDCAD is Testing 1.35 for a Breakout

1/19/2023 11:48 AM

The USD/CAD pair shows mixed dynamics during the morning session, testing strong resistance at 1.3500. The US dollar is recovering after uncertain trading at the beginning of this week; however, the macroeconomic background remains ambiguous.

US Retail Sales fell 1.1% in December after -1.0% in November, while analysts had expected an improvement in dynamics to -0.8%. In addition, Industrial Production volumes corrected from -0.6% to -0.7%, while analysts' forecasts assumed -0.1%. Capacity Utilization in December decreased from 79.4% to 78.8%, which also turned out to be worse than optimistic forecasts of growth to 79.6%. The released macroeconomic data strengthened investors' confidence that the US Federal Reserve may abandon its "hawkish" policy in the future, which brings the current cycle of interest rate hikes closer to completion.

Canadian statistics, published the day before, turned out to be slightly better: the Raw Material Price Index in December fell by 3.1% after falling by 0.8% a month earlier, while analysts had expected an increase in negative dynamics to -1.3%. In turn, the Industrial Product Price Index corrected from -0.5% to -1.1%, although forecasts assumed a value of -0.3%.

On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range is narrowing from below, reflecting the emergence of ambiguous dynamics of trading in the short term. MACD has reversed to growth having formed a new buy signal (located above the signal line). Stochastic keeps its upward trend but is rapidly approaching its highs, which reflects the risks of overbought US dollar in the ultra-short term.

Resistance levels: 1.3500, 1.3550, 1.3600, 1.3650. | Support levels: 1.3450, 1.3400, 1.3356, 1.3300.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024