Forex Trading Analysis: USD/CAD Fluctuations
The USD/CAD has fluctuated this week and is still in a consolidation state overall.
It is worth noting that the level of 1.4350 provides strong support, which was once broken through, but then the currency pair turned around and rebounded upwards.
The key level of 1.45 above poses a certain resistance to the currency pair, and it is reasonable for the current trend to fluctuate.
The market cannot move in one direction for a long time, and currently, it seems that the US dollar/Canadian dollar is in the process of attempting to construct some kind of bullish flag shape.
technical analysis
As of now, the US dollar/Canadian dollar is a bullish market and there will be no short selling in the short term. Having said that, many traders may be concerned about whether the Canadian Parliament can take effective action. Of course, they will also pay close attention to the yield of the US 10-year treasury bond bond, whose trend has always been influential. If US interest rates continue to rise, it will have a significant impact on the USD/CAD currency pair, with the USD/CAD likely to surpass the 1.45 level. I think the level of 1.45 will continue to be important, but if we can break through this level, the market is likely to look towards the level of 1.4750 in the future.
On the downside side, if it falls below the 1.4350 level, it may initiate a downward trend to the 1.42 level, supported by the 50 day moving average (EMA) of the index, and historically, this region has experienced significant volatility.
In view of this, I think this should be regarded as a value seeking market. Unless there is a change in the US bond market, you should buy on bargain.
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