USDCAD: Rebound does not change the weak

Fundamental analysis:

Kit Juckes, chief global currency strategist at Societe Generale, believes the dollar's move higher against the yen needs to be driven by higher Treasury yields. The dollar is supported by a strong US economy, a hawkish Fed and favourable terms of trade, but the market is short Treasuries and long the dollar. The yen's rally suggests that the market needs rising Treasury yields to push the dollar higher against the yen. We are approaching peaks in Treasury yields and the dollar, and typically the final stages of a dollar rally will see more big moves than moves

Daily chart of USD/CAD USDCAD:

Technical analysis:

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

Long-short turning point :1.3650

Resistance: 1.3850 1.4050

Support: 1.3450 1.3250

Trading strategy: Bearish below 1.3450, target 1.3450, 1.3250

Alternative: Bullish above 1.3550 with 1.3850, 1.4050 targets