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USDCAD: rebound layout empty sheet

2022-10-30
718

Fundamental analysis:

The US economy rebounded strongly in the third quarter amid a shrinking trade deficit, but the data overstates the health of the economy as domestic demand was the weakest in two years due to aggressive interest rate hikes by the Federal Reserve. Thursday's preliminary third-quarter gross domestic product report from the Commerce Department also showed residential investment contracted for the sixth straight quarter, the longest stretch of contraction since the housing market collapsed in 2006 as the sector struggled under the weight of soaring mortgage rates.

Daily chart of USD/CAD USDCAD:

Technical analysis:

The daily chart shows that the short-term exchange rate has rebounded slightly, MACD runs on the 0 axis but the volume can continue to shrink to near the 0 axis, RSI continues to fall, and it is expected that the short-term exchange rate will have a high probability to further decline after the rebound.

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

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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