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USDCAD: rapid decline

2023-01-23
531
Fundamental analysis:

USD/CAD remained volatile around 1.33848. Canada’s November retail sales monthly rate was -0.1%, expected -0.50%, and the previous value was 1.40%. Canadian retail sales data will make the Bank of Canada's decision tough next week amid clear signs that the economy is slowing and housing is on the decline. The market is pricing in a 65% chance of a 25 basis point rate hike next week and a 35% chance of keeping it unchanged.

US dollar Canadian dollar USDCAD - 4-hour K-line chart shows:



Brief technical analysis:

Looking at the 4-hour chart: the short-term momentum has fallen sharply, the short-term decline has not stopped, the market is shrouded in bearish sentiment, and there is a further downward trend, the MACD indicator is in the bullish area and moves downward, and the RSI indicator is hovering below the 50 balance line;

Long-short turning point: 1.33973

Suppression: 1.34187, 1.34434
Support: 1.33668, 1.33473

Trading strategy: bearish below 1.33973, target 1.33668, 1.33473
Alternative strategy: Bullish above 1.33973, target 1.34187, 1.34434

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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