USDCAD Ready for a new high to 1.3650?

The USD/CAD exchange rate continues its decline from around the mid-1.3500s, reaching its highest level in almost two months and remaining under selling pressure for the second consecutive day on Wednesday. The reduction in the forecast for domestic oil production growth for 2024 by the US Energy Information Administration (EIA) in the February Short-Term Energy Outlook report released on Tuesday helped alleviate concerns about oversupply. This, along with recent attacks on ships by Iranian-backed Houthi rebels in the crucial Red Sea, which accounts for nearly 12% of global oil trade, supported oil prices, thereby favoring the commodity-linked Canadian dollar. The overnight decline in US Treasury bond yields prompted some profit-taking in USD, especially after the post-NFP rally, although expectations of a hawkish stance from the Federal Reserve (Fed) should help limit deeper losses. Incoming US macroeconomic data suggests a strong economy, giving the Fed more room to maintain higher interest rates for longer. On the daily chart, a price movement above the psychological level of 1.3540 followed by a retracement towards the demand zone is observed, where a technical rebound around the 1.3420 level is expected, potentially offering a long entry opportunity with a target at 1.3630. The M15 timeframe will be crucial for entry evaluation, awaiting any good market entry signals. Patience and proper capital management are key. Greetings and have a good day to everyone.

Trade active:

After the retest of the demand zone, the market did a significant change of structure at M15. Check the levels of my trade on the graph

Comment:

The trade is close to breakeven. Now, I'm waiting for a new opportunity to enter a long position after a liquidity grab below the 1.3420 level.

Comment:

Good reaction after the CPI, Now it's time to share a new analysis with a new view on USDCAD after the upward toward the reversal zone