USD/CAD Bullish Trend Continues Amidst Fed Uncertainty and...
USD/CAD Bullish Trend Continues Amidst Fed Uncertainty and Crude Oil Dynamics
The USD/CAD pair remains entrenched in a bullish trend, taking a brief retracement during the Asian session, signaling a potential setup for a new long impulse. Our analysis points towards a target of 1.38600 for the upcoming move.
The prevailing perception that the Federal Reserve (Fed) is approaching the conclusion of its tightening policy has contributed to a decline in US Treasury bond yields, keeping USD bulls on the defensive. Despite this, recent statements from various Fed officials have introduced uncertainty regarding whether interest rates have peaked or if further hikes are necessary to rein in inflation to the 2% target.
The cautious market sentiment is expected to provide a buffer against excessive downside for the safe-haven US Dollar. Additionally, the bearish trend in Crude Oil prices may persist, undermining the commodity-linked Canadian Dollar (Loonie) and offering support to the USD/CAD pair. Concerns about supply disruptions from the Middle East have diminished in light of the easing of tensions in the Israel-Hamas conflict, further influencing investor sentiment.
Our preference
Long positions above 1.37550 with targets at 1.3820 & 1.3860 in extension.
The USD/CAD pair remains entrenched in a bullish trend, taking a brief retracement during the Asian session, signaling a potential setup for a new long impulse. Our analysis points towards a target of 1.38600 for the upcoming move.
The prevailing perception that the Federal Reserve (Fed) is approaching the conclusion of its tightening policy has contributed to a decline in US Treasury bond yields, keeping USD bulls on the defensive. Despite this, recent statements from various Fed officials have introduced uncertainty regarding whether interest rates have peaked or if further hikes are necessary to rein in inflation to the 2% target.
The cautious market sentiment is expected to provide a buffer against excessive downside for the safe-haven US Dollar. Additionally, the bearish trend in Crude Oil prices may persist, undermining the commodity-linked Canadian Dollar (Loonie) and offering support to the USD/CAD pair. Concerns about supply disruptions from the Middle East have diminished in light of the easing of tensions in the Israel-Hamas conflict, further influencing investor sentiment.
Long positions above 1.37550 with targets at 1.3820 & 1.3860 in extension.
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🇺🇸 US ZERO SPREAD BROKER: forexn1.com/usa/
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