USDCAD: It is expected to further decline

Fundamental analysis:

With high inflation and increasing risk of economic recession, the market generally expects the Federal Reserve to raise the policy interest rate from 3.25% to 4.00%. The market will find out from the monetary policy statement of the Bank of Canada whether it is ready to turn to doves, and everyone will focus on the economic forecast of the Bank of Canada. If the Central Bank of Canada raises interest rates by 75 basis points, the US dollar may return to 1.3850 against the Canadian dollar. If the committee members are cautious about the risk of recession and suggest that the pace of tightening policy may slow down in the future, then the currency pair may accelerate its rise. In addition, if the Central Bank of Canada said it would rely on economic data while raising interest rates by 75 basis points, it would be regarded as a dove's attitude

USD CAD daily chart:

Technical analysis:

The daily chart shows that the short-term exchange rate continues to decline slightly, MACD runs on the 0 axis but the volume can continue to shrink, RSI continues to fall, and the short-term exchange rate is expected to further decline.

Empty turning point: 1.3650

Resistance level: 1.3850 1.4050

Support position: 1.3450 1.3250

Trading strategy: bearish below 1.3450, with target prices of 1.3450 and 1.3250

Alternative strategy: bullish above 1.3550, with target prices of 1.3850 and 1.4050