Monday, January 30, 2023

Troubled positions within the price range

USD/CAD has held its lower price range over the past month of trading, but short-term stocks are in the middle of their five-day lows.

As of this writing, the USD/CAD pair is near the junction of 1.34100 and is in the middle of its one-week price range. However, the currency pair has been able to maintain its lower values ​​and has recovered its incremental losses in the last month. Friday’s low was around 1.33230 followed by a day’s high around 1.34440.

USD/CAD could decline tomorrow due to the absence of US financial institutions

Major financial institutions were absent from trading in the US yesterday for the Martin Luther King holiday. This may be one reason why USD/CAD produced volatile, consolidating positions. Full volume and the return of key data sets up an interesting trading day today and speculators should watch the price action closely. The Consumer Price Index in Canada will be released today.

Inflation is a major concern in Canada, as in the US, and the Bank of Canada has been mirroring the rhetoric of the US Federal Reserve in many ways. The fact that US inflation showed its slowdown last week via its CPI data may be prompting some speculators to place bets on the likelihood of Canada showing a similar result today.

Sentiment is fragile and USD/CAD will feel the consequences

  • The 1.34000 mark could become an important index in the short term. If usd/cad quotes If it stays close to this level, it may indicate that financial institutions are keeping an eye on it. However, with the release of Canada’s CPI results today, it is certain that something market volatility,
  • The volatile USD/CAD conditions seen yesterday may continue, but consolidation is likely to break based on sentiment generated by Canadian inflation data.

Traders who are bearish and looking to short the USD/CAD cannot be blamed, but should be very careful ahead of today’s Canadian inflation report. Yesterday’s price development reminds us that risk management It is necessary. If today’s Canadian CPI results show weak inflation, traders should expect volatile conditions later, but after the dust settles, USD/CAD could trade slightly lower and challenge levels below.

Traders must be realistic about their goals and use take profit orders to execute winning positions. USD/CAD is in sight of significant lower values ​​at a glance forex charts Three months and short term results may continue to transit within this zone.

Canadian Dollar Short Term Forecast:

  • Current Resistance: 1.34250
  • Current Support: 1.33920
  • Max High: 1.34475
  • Bottom target: 1.33370

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Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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