Solid News

USDCAD Market Update

2/24/2023 10:45 AM

With the support of the minutes of the last meeting of the US Federal Reserve, the USD/CAD pair reached two-month highs in the 1.3580 area.

In the report, representatives of the regulator confirmed that the slowdown in inflation in the US economy is insufficient, so the tightening of monetary policy should be continued, and it is possible that the step of increasing the interest rate may return from 25.0 basis points to 50.0 basis points. Experts note that after the publication of the document, the opinions of the officials could become even more “hawkish” since at the time of the meeting, strong January data on the labor market and poor statistics on inflation had not yet appeared. A further increase in the interest rate will strengthen the position of the US dollar against its competitors, which is already supporting its quotes but at the same time, the risks of a downturn in the national economy, which so far remains stable, will increase: according to data released yesterday, its growth slowed down in the fourth quarter of 2022 3, 2% to 2.7% but still remained at high levels.

The Canadian dollar is under pressure due to the correction in oil prices, which is the key export item of the national economy but in general the situation inspires investors with optimism, primarily due to the gradual slowdown in inflation. According to January data, the consumer price index fell from 6.3% to 5.9%, while the core index fell from 5.4% to 5.0%. Prospects for the recovery of the Canadian currency remain but at present, monetary factors dominate the market.

The trading instrument is testing 1.3550 (Fibonacci correction 23.6%, Murrey level [6/8]), consolidation above which will give the prospect of further growth to 1.3672 (Murrey level [8/8]) and 1.3732 (Murrey level [+1/8]). The key “bearish” level is 1.3427 (Murrey level [4/8], the middle line of Bollinger bands), after breaking down which the decline will continue to 1.3305 (Murrey level [2/8]) and 1.3244 (Murrey level [1/8]).

Technical indicators point to the continuation of the upward trend: Bollinger bands and Stochastic are directed upwards, while the MACD histogram is increasing in the negative zone.

Resistance levels: 1.3550, 1.3672, 1.3732. | Support levels: 1.3427, 1.3305, 1.3244.

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