Yield Drops, Suppressing USD, USDCAD Nudges Down
Surges In Commodities, Boosting CAD; Accompanied With USD Weakens, USDCAD In Bear Trend
Aggressors are suggested to consider marginal Short around 1.25778, Target 1.25406, Stop-Loss by 1.25970. Non-Aggressors are advice to await for better entry.
During the Asian session today, USDCAD fell around 0.15% and fluctuating. The USD tumbled after the surge as Fed Chairman J.Powell’s testimony in a congressional hearing yesterday with statements not unexpectedly hawkish. In addition, the US Bond Yield continued to fall today, dragged down USD, and made the USD to react with the swaying bearish layout earlier. In the market outlook, since the US will announce the CPI(Dec)(YoY) at 21:30 tonight, the market estimate that if the inflation data resulted higher than forecast, it will not be able to prompt the Fed to further accelerate the tightening of their easing policy, and USD may continue to be weaken. On the other hand, due to the depreciation of the USD continues, relatively made the pricing in commodities to rise, and ,ade CAD to roar. While concerns in pandemic rebound progressively eased, Oil Price advances would benefits CAD. Wherefore, would recognize the future outlook of USDCAD will remain in Bear.
In 4Hrs range, (5,10,20)Tri-MAs downtrending and aligns to Bear. Candlestick slided through Tri-MAs and oscillating. MACD negative column expanding. KD sinking. Overall a swaying Bearish trend for the time being.
(Information above is purely personal opinion, doesn’t represent platform’s standpoint. This opinion can only be use as reference)