USD/CAD Technical Analysis – Risk Sentiment in Focus | Forexlive
On the daily chart below, we can
see that the buyers keep leaning on the red long period moving
average and the support level at 1.3664 as depicted by
the long candlesticks wicks rejecting the zone. The BoC is on pause, while the
Fed is still hiking although near the end of the cycle.
The recent banking crisis weighed
on the US Dollar as interest rates expectations were repriced lower and
Treasury yields saw a record fall. Going forward, looks like the pair will be
moved more by the risk sentiment than the interest rates expectations.
On the 4 hour chart below, we can
see that we have another descending
triangle pattern with the base at the 1.3664 support and the 38.2% Fibonacci
retracement level. The sellers will need to break below that
strong area to gain conviction and target lower lows.
The buyers, on the other hand,
will need to break above the trendline to target the high at 1.3861 or
higher.
On the 1 hour chart below, we can
see that the buyers will also need to break above the resistance zone at
1.3740. This mini range eventually will break and lead to a strong move upward
or downward.
For now, the best strategy would
be to wait for a breakout or a fundamental catalyst strong enough to lead to
the breakout. Maybe, today’s US PMIs can offer that opportunity.