USD/CAD remained volatile around 1.35012. The market downgraded the Fed’s expectation of a pause in raising interest rates in June, leading to a stronger USD, which was negative for USD-denominated commodity prices. However, oil prices rose by more than 3% overnight, benefiting from a sharp drop in U.S. gasoline inventories, demand soared to the highest level since 2021, optimistic expectations for U.S. debt ceiling negotiations, and Russia’s rhetoric that contradicted OPEC+, the outlook for oil prices continues to be bullish .
US dollar Canadian dollar USDCAD - 4-hour K-line chart shows:
Brief technical analysis:
Looking at the 4-hour chart: the momentum of the bulls continues to fluctuate and move upwards, short-term bullish sentiment emerges, the bulls in the market are constantly moving upwards, the MACD indicator is hovering around the 0 axis, and the RSI indicator is weakly finishing above the 50 balance line;
Resistance levels: 1.35192 1.35351
Support levels: 1.34733 1.34567
Trading strategy: Bullish above 1.34904, target 1.35192 1.35351
Alternative strategy: bearish below 1.34904, target 1.34733 1.34567