Recession fear subside, greenback follow suit.
“Bullard says recession fears are premature.”
Greenback eases from the top, trimming some of its gains from last week as recession fears abate. Last Friday, St Louis Federal Reserve President James Bullard commented that recession fears are over exaggerated as the US economy is still buoyant. In addition, Bullard expressed that aggressive response via policy tightening is the best way to address high inflation before its too late. Following his remarks, traders shifted their attention to risky assets in the market, abandoning the bull bandwagon on the greenback.
Quick recap on USDCAD
The pair retraced from its higher level, near the strong threshold of 1.3045.
USDCAD Weekly Technical Analysis
From weekly perspective, the pair was pressured by bears from the top level of ascending channel.
USDCAD Daily Technical Analysis
Recent retracement from 1.3046 signaled an imminent formation of double top. A confirmation could be attained via confirmatory breakout at the support level of 1.2881.
ORDER: SELL STOP
STOP LOSS: 1.2910
Target 1: 1.2770
Target 2: 1.2675
ZFX Analyst’s Comment
The pair failed to conquer 1.3046 twice while recent price action suggests temporary weakness ahead.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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