USDCAD rebounds as strong data raise expectations for more rate hike.
“Positive data rise expectation for a longer period of high interest rates.”
US dollar held on to its gains against a basket of six major currencies following upbeat economic data from the region. Both Producer Price Index and Jobless Claims fared better than expected, cementing expectations that Federal Reserve may have to increase interest rates for a longer period of time. Moreover, Cleveland Fed President Loretta Mester raised market expectation further after commenting that they have “more work to do”.
Quick recap on USDCAD
The pair remains traded within a tight range with strong support in between the region of 1.33 and 1.3245.
USDCAD Weekly Technical Analysis
From weekly perspective, USDCAD may end the week with strong bullish rebound, that may suggests further upside ahead.
USDCAD Daily Technical Analysis
From daily perspective, MACD shows increasing bullish momentum, which suggests extended gains after closing above 1.3500.
ORDER: BUY STOP
STOP LOSS: 1.3430
Target 1: 1.3700
Target 2: 1.3800
ZFX Analyst’s Comment
Overall, we would advice to wait for a breakout at 1.3500 before entering the market.
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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