Risk appetite dominates, US dollar relinquish further.
“Traders shifts their focus as Fed signaled to pause policy tightening.”
Bears continue to steer the greenback as traders shifts their focus towards risky assets in the market. For the time being, investors have seemingly priced-in for 2 more 50 basis point rate hikes from Fed, before pausing its tightening effort to monitor its impact towards US economy. Likewise, risk appetite towards China recovered substantially as Shanghai’s local government announced to remove curbs on businesses starting from June 1st.
Quick recap on USDCAD
The pair tumbled extensively, soon after hitting a new hear near the resistance level of 1.3046.
USDCAD Weekly Technical Analysis
USDCAD experienced significant pullback from 1.2884, like the pair’s prior move during the end of 2021.
USDCAD Daily Technical Analysis
In daily chart, the pair is currently heading towards 1.2662, nearby the 200-MA line which may provide some difficulty to thrust further down.
Trading Idea
ORDER: SELL STOP
ENTRY: 1.2645
STOP LOSS: 1.2785
Target 1: 1.2485
Target 2: 1.2400
ZFX Analyst’s Comment
USDCAD may experience some challenges to extend its losses as 200-MA line resides near the support of 1.2662. We will be looking at a close call in the near-term, thus it is recommended to remain vigilant towards any breakout in the meantime.
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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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