Market Outlook
USDCAD tumbles, may extend its losses ahead. - Zeal Capital Market

USDCAD tumbles, may extend its losses ahead.

15-03-2023 06:40

“More losses ahead for greenback as investors wait for more signal from Fed.”

Greenback weakens further after mixed economic data which push investors to adopt a wait and see approach. Last Friday, US Nonfarm Payrolls report shows a downtrend in hiring, which may derail Federal Reserve’s call to have more interest rate hike in the future. However, yesterday’s Consumer Price Index shows a different perspective. Last month, consumer goods inflation remained at high level of 6.0% on a year-to-year basis. The data was in line with Federal Reserve’s comment that inflation remains “sticky” and it requires substantial amount of time to bring it back down to 2%.

Technical Analysis

USDCAD tumbles, may extend its losses ahead. - Zeal Capital Market

USDCAD, Daily: USDCAD extend its losses as it retreats near the strong resistance level of 1.3880. Overall, MACD momentum which shows diminished bullish momentum suggests an extension of losses, towards the direction of next support level near 1.3500.

Resistance level: 1.3700, 1.3880

Support level: 1.3500, 1.3240

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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