USDCAD MIGHT BE HEADING FOR REVERSAL
The U.S. dollar weakened as risk sentiment improved on the back of hopes that China's economic stimulus measures would stabilize its economy. Additionally, strong U.S. job data raised expectations that the Federal Reserve may be close to concluding its rate hike cycle.
The U.S. dollar index edged 0.15% lower to 104.08, remaining near its recent peak. In August, it gained 1.7%, ending a two-month losing streak.
Markets are now anticipating that the Federal Reserve will likely keep interest rates unchanged in the near term, with a significant chance of no further rate hikes this year.
Meanwhile, the Canadian dollar remained stable as the Bank of Canada's policy meeting approached, with no expected change in interest rates. Investors are closely monitoring comments from Fed officials for insights into the upcoming policy meeting, which will have implications for the U.S. and Canadian dollars.
On the technical side, both MACD and RSI are showing BUY signals, although ATR is showing low volatility, which might be an indicator that the bulls have lost their power.
If the current trend continues, the bulls might start reentering again at 1.3596 and the price might reach levels of 1.3606. If the trend reverses, the price might reach its support level at 1.3580
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The U.S. dollar index edged 0.15% lower to 104.08, remaining near its recent peak. In August, it gained 1.7%, ending a two-month losing streak.
Markets are now anticipating that the Federal Reserve will likely keep interest rates unchanged in the near term, with a significant chance of no further rate hikes this year.
Meanwhile, the Canadian dollar remained stable as the Bank of Canada's policy meeting approached, with no expected change in interest rates. Investors are closely monitoring comments from Fed officials for insights into the upcoming policy meeting, which will have implications for the U.S. and Canadian dollars.
On the technical side, both MACD and RSI are showing BUY signals, although ATR is showing low volatility, which might be an indicator that the bulls have lost their power.
If the current trend continues, the bulls might start reentering again at 1.3596 and the price might reach levels of 1.3606. If the trend reverses, the price might reach its support level at 1.3580
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.