The pressure on the Bank of Canada to raise interest rates aggressively is further intensifying

Fundamental analysis:

The US dollar remained volatile around 1.28496 against the Canadian dollar. Statistics Canada recently showed that CPI soared 6.8% year-on-year in April, a new high since 1991 and higher than the 6.7% expected by economists. Although the main reason for pushing up CPI is food, housing and other fields, it is worth noting that inflation has penetrated into all aspects, and the prices of almost everything are rising.

USD CAD - 4-hour K-line chart shows:

Technical comments: the short power continued to fluctuate downward in the middle and lower rail section of the brin belt index channel, and fluctuated at a low level near 1.27757. After a short-term weak consolidation, the long power began to wait for the opportunity to enter, tangled in the narrow consolidation of the middle and upper rail section of the brin belt index, the brin belt index continued to shift in the closing trend, and the MACD index remained in the short area and moved upward slowly, The RSI index is in the short position and moves upward to hover near the 50 equilibrium line;

Long short turning point: 1.28359

Pressing position: 1.38841, 1.29179

Support position: 1.28022, 1.27625

Trading strategy: bullish above 1.28359, target 1.38841, 1.29179

Alternative strategy: bearish below 1.28359, targets 1.28022 and 1.27625

The above analysis is a personal point of view and is for reference only.