Hello Traders,
After the US paused its interest rate this week, the US dollar has dropped significantly even though the Fed signal further interest rate hikes ahead. You can see the bearish momentum is strong with a breakthrough of the support trend line. However if you look at the RSI it is entering oversold territory which may provide a pullback in the USDCAD back to the trendline and then continue its bearish momentum. Be patient as the market is a transfer of wealth from the impatient to patient.
After the US paused its interest rate this week, the US dollar has dropped significantly even though the Fed signal further interest rate hikes ahead. You can see the bearish momentum is strong with a breakthrough of the support trend line. However if you look at the RSI it is entering oversold territory which may provide a pullback in the USDCAD back to the trendline and then continue its bearish momentum. Be patient as the market is a transfer of wealth from the impatient to patient.