News
7x24
Quotes
Economics Calendar
Video
Data
- Names
- Latest
- Prev.
Columns
Trending Topics
Russia-Ukraine Conflict
The war between Russia and Ukraine continues, and it is difficult for the two sides to reach an agreement in negotiations. Western countries have imposed several rounds of sanctions on Russia. The outlook is unpredictable.
The Fed
The Federal Reserve (Fed), or the central bank of the United States, is responsible for regulating the U.S. monetary policy and interest rates. As a provider of liquidity for world trade, the Fed is also known as the world's central bank. Its every move affects the global economy and financial markets.
China-U.S. Relations
Focus on Pelosi's Taiwan Visit ! How will China-U.S. relations develop in the future, win-win cooperation or confrontation?
FastBull Spotlights
Pick the most insightful news around the world for you!
Video
Latest Update
Full Course: Beginner’s Guide to Develop a Robust Deep-Learning Ai for Stock or Crypto Trading
This is the Guide on how to Develop a Robust Deep-Learning Ai for cryptocurrency investing for beginners, explaining the use of recurrent neural networks (RNN) for price changes and a linear layer for technical indicators, and presents a code snippet for building the AI model using PyTorch.
How to customize your own indicators and get over 2x of your asset returns?
An example of a customized indicator strategy that significantly increased BTC returns during a long bullish trend is presented, want to know the backtest results and codes of the strategy?
PEPE Has Surged Over 7000% Max In 1-Month! Buy It or Sell It?
PEPEcoin gained over 7000% in 1-month and surged to over 1.6 billion dollar market cap. Is there still a chance to buy from the technical indicators?
Supertrend Makes 4x of Gain! How to Use It? How to Code and Calculate?
An author shared the SuperTrend strategy Python code for TradingView. So I decided to give it a try, breaking it down step by step and running some tests to see if it really works.
Recent Searches
Trending Searches
View All
No data
Invite
USDCAD: Bullish "Double Bottom Pattern" Lays the Foundation for Further Rise
Summary:
The USDCAD is consolidating in the middle of the long-term symmetrical triangle pattern around 1.3500 and is about to break upward. Traders bet that the Bank of Canada will have to raise interest rates to end its "conditional suspension" after the strong CPI report was released earlier this week.
CLOSED
1.35383
ENTRY
1.38000
TGT
1.33800
SL
1.34136 -0.00347 -0.25%
972
Points
Profit
1.33800
SL
1.36355
CLOSING
1.35383
ENTRY
1.38000
TGT
Fundamentals
Earlier last week, Canada released its CPI data for April, the overall data was higher than expected, at 0.7%, and the market was expected to be 0.5%. It raised the inflation rate to 4.4%, which is the first increase of this indicator since last June.
Canada's inflation rebounded in April, and the CAD benefited temporarily. However, the CPI report will not have a significant impact on the CAD. Inflation data has provided a significant impetus for the expectation of interest rate hikes in the market, which has benefited the CAD at least temporarily.
As Canadian investors know, the Bank of Canada announced in January that its interest rate hike cycle was "conditionally suspended". Just as Federal Reserve Chairman Powell hinted to suspend interest rate hike earlier this month, investors believe that the Bank of Canada has reached the highest interest rate in this cycle, and the next move of the Bank of Canada will be to cut interest rates.
At least for Canada, these expectations may be wrong.
Supported by last week's CPI data and Canada's overall better-than-expected economic data, we have seen a dramatic repricing of the market's expectations of Canadian interest rates. In the past few weeks, futures traders have changed from expecting to cut interest rates at least once before the end of the year to almost completely expecting to raise interest rates again at the end of the third quarter; More directly, traders now expect that the probability of raising interest rates at the next meeting of the Bank of Canada in early June is about 30%.
Technical Analysis
From a technical point of view, the USDCAD has been at a higher low point and a lower high point since mid-March, and has formed a symmetrical triangle pattern in the 1D timeframe. Described by the laws of physics, this mode is similar to a compressed spiral spring, and energy accumulates in the spring as the time range continues to shrink. When one of the pressure points is finally removed, the energy of the spring will be released in one direction.
It is notoriously difficult to predict the direction of a symmetrical triangle's breakthrough in advance, especially in the market where there is no clear trend before this model; therefore, the mid-term transaction may want to wait for the confirmation of the breakthrough to signal the next major breakthrough.
The USDCAD trades around 1.3500 in the middle of this week's range. If the exchange rate rebounds to the mid-1.3500 resistance level or falls back to the low support level, short-term trading can be considered to make a clear direction in the symmetrical triangle model.
The stochastic oscillator could be offering a potential way out of the current impasse. It is hovering in the 50 neutral range, but it is also testing the support set by its SMA. A break below could encourage the bears to push the USDCAD to another lower low.
However, the primary target that the bulls need to break out of at the moment is the 1.3482-1.3536 zone consisting of the 50-day, 100-day, and 200-day SMAs and the low of October 4, 2022, respectively. Then a continued test of the 1.3600 level would follow, paving the way for a further test of the 1.3700 level.
In addition, the USDCAD formed a bullish double bottom pattern (the bottom of April 14 and May 8). However, bulls should avoid hasty actions and must first break through the 1.3667 neckline. If this happens, the potential upward target of this pattern will be located in the 1.3900 area.
Overall, the USDCAD bulls are at a critical point and could move further higher at any time. It is recommended to buy the dips.
Trading Recommendations
Trading direction: Long
Entry price: 1.3550
Target price: 1.3800
Stop loss: 1.3380
Deadline: 2022-06-07 23:55:00
Support: 1.3512, 1.3453, 1.3407
Resistance: 1.3667, 1.3700, 1.3745
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
Master of Economics, 8 years in the financial industry, CFA holder, joined HSBC (Hong Kong) Bank in 2013 after graduating from the University of California, USA in the Investment Research and Markets Department. With years of financial market experience and trading experience, having provided excellent investment advice to many brokerages, entity derivatives importers and clients in Greater China.
Related Analysis
XAUUSD: Focus on U.S. May Non-Farm Payrolls, Gold Prices Expected to Maintain Range-bound Volatility
TradingBTCUSD: Does Market Failure to Break Wave 4 Indicate the Start of Upward Impulse Waves Structure for Bulls?
TradingDJIA: House Agreement on Debt Ceiling Expected to Boost Stock Market, but Not Expected to Be Trend-Setting
PROFIT +40216 PointsWTI: Stakeholders Are Sure to Find the Greatest Common Factor to Maintain Price Stability
TradingDJIA: "Rotation Effect" Will Not Continue to Be Favorable, Mainly Depending on the Economic Performance
PROFIT +7510 Points
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2023 FastBull Ltd
Home News Columns 7x24 Economics Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.