AUDCAD is under the pressure of a strong dollar
Traders,
In today's trading session, our focus lies on AUDCAD, with our sights set on a potential selling opportunity around the 0.88800 zone. AUDCAD is currently entrenched in a downtrend, undergoing a correction phase as it nears the crucial support and resistance area at 0.88800.
Adding depth to our analysis, it's essential to consider the broader market dynamics, particularly the strength of the US dollar. Historically, a robust US dollar tends to exert downward pressure on indices, given their positive correlation. This relationship stems from the fact that a stronger dollar makes US exports more expensive, leading to lower corporate profits and dampened investor sentiment, thus impacting indices negatively.
Moreover, indices, being positively correlated with AUDCAD, further compound the pressure on the pair in the face of USD strength. As indices decline due to the strong dollar, AUDCAD typically follows suit, given their interconnectedness.
Therefore, with AUDCAD already in a downtrend and the US dollar exhibiting strength, the combination of these factors suggests a favorable environment for a selling opportunity in the pair around the 0.88800 zone.
Trade wisely,
Joe
In today's trading session, our focus lies on AUDCAD, with our sights set on a potential selling opportunity around the 0.88800 zone. AUDCAD is currently entrenched in a downtrend, undergoing a correction phase as it nears the crucial support and resistance area at 0.88800.
Adding depth to our analysis, it's essential to consider the broader market dynamics, particularly the strength of the US dollar. Historically, a robust US dollar tends to exert downward pressure on indices, given their positive correlation. This relationship stems from the fact that a stronger dollar makes US exports more expensive, leading to lower corporate profits and dampened investor sentiment, thus impacting indices negatively.
Moreover, indices, being positively correlated with AUDCAD, further compound the pressure on the pair in the face of USD strength. As indices decline due to the strong dollar, AUDCAD typically follows suit, given their interconnectedness.
Therefore, with AUDCAD already in a downtrend and the US dollar exhibiting strength, the combination of these factors suggests a favorable environment for a selling opportunity in the pair around the 0.88800 zone.
Trade wisely,
Joe
Join our telegram Channel for daily market updates t.me/JoeChampion