HomeForex MarketForeign exchange Watchlist: USD/CAD’s 500-Pip Vary Nonetheless Intact!

Foreign exchange Watchlist: USD/CAD’s 500-Pip Vary Nonetheless Intact!

USD/CAD received rejected on the 1.3050 resistance!

Will the pair drop to its vary help 500-ish pips away?

Right here’s the setup that I’m at this time:

USD/CAD Day by day Foreign exchange Chart

In case you missed it, international development issues and Fed rate of interest hike speculations have propelled USD/CAD at the very least 500 pips larger within the final two weeks.

The bulls’ celebration kinda stopped at 1.3050, although, because of USD bears leaping in at Could’s highs.

Coincidentally, 1.3050 just isn’t removed from a variety resistance zone that USD/CAD bulls and bears have been respecting since August 2021.

With Stochastic hanging out within the overbought zone and the final candlesticks hinting at a weakening bullish (if not a bearish) development, you possibly can guess that at the very least some greenback bears are pondering of shorting.

Earlier this month, the Financial institution of Canada (BOC) raised its rates of interest by 50 foundation factors for the second assembly in a row.

BOC famous that the trajectory of inflation meant that “rates of interest might want to rise additional,” and that members are “ready to behave extra forcefully” if financial stories level to inflation staying above BOC’s 2% goal.

We’ll see if Canada’s retail gross sales and inflation stories scheduled this week will push BOC members to boost charges by one other 50 bps or so.

Headline retail buying and selling is anticipated to leap by 0.8% whilst core retail gross sales decelerate from 2.4% to 0.5%. In the meantime, client inflation is anticipated to have sped up from 0.6% to 1.0% in Could with the closely-watched trimmed annual CPI rising from 5.1% to five.4%.

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