The higher-than-expected inflation data for January has reignited concerns about rising prices and its implications for Federal Reserve policy. While investors had anticipated rate cuts in the near term, the hot inflation print may delay such actions. As the Fed navigates the delicate balance between containing inflation and...
CAD’s Troubles Could Be Soon Forgotten
2024-01-26 • Updated
The Canadian Dollar faces a confluence of challenges, from the unexpected BoC stance on interest rates to mixed economic data and the traditionally impactful fluctuations in oil prices. As investors grapple with uncertainty regarding future monetary policy directions and the resilience of various economic sectors, the 'Loonie' is navigating a complex landscape. Understanding the interplay of these factors is crucial for anticipating the trajectory of the Canadian Dollar in the coming weeks and months.
GBPCAD - D1 Timeframe
GBPCAD on the daily timeframe seems to have just completed its fourth rejection from the trendline resistance, setting the tone for bearish movement. The confluences for this trade include; the trendline resistance, supply zone, 88% of the Fibonacci, and the previous break of structure being a bearish one. In this case though, my target is quite short so I can wait to see if the trendline support gets broken or not.
USDCAD - H4 Timeframe
USDCAD is currently resting on the support trendline with a demand zone in sync, even though the higher timeframe suggests a bearish trend. This kind of instance reinforces the need for patience and additional confirmations, which is why despite my overall bearish sentiment, I would rather wait to see a clear break and retest of the trendline before I swing into the trade.
CADJPY - H4 Timeframe
CADJPY as seen has already broken the trendline after being rejected from the overall supply zone. Following this, I have marked out the Fibonacci retracement levels because I was waiting patiently for the retest, which seems to be ready now. The confluence of trendlines, Fibonacci retracement level, supply zone, and the higher timeframe trend are my confirmations for the bearish sentiment.
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
Today, Tuesday, February 13th, at 8:30 am New York time, the Bureau of Labor Statistics (BLS) releases US inflation data related to the Consumer Price Index (CPI). This data, considered high-impact, could generate significant changes in the perception of...
The US Dollar Index (DXY) has been in a consolidation phase since early February, displaying minor signs of weakening last week. Despite this, the USD continues to find support around the 104.00 mark on dips, indicating a general resilience. Analysis suggests that the USD may currently be overvalued in the short term when considering various factors
Last Tuesday, the Australian dollar experienced its steepest drop of the year, falling by 1.18%, following higher-than-expected US inflation figures, which boosted the US dollar. However, the Aussie has since rebounded and is now trading at a two-week high against the US dollar. Investors are...
Commerzbank's analysis suggests a brighter outlook for the New Zealand Dollar (NZD) in the coming months despite recent downward pressure. Factors like broader U.S. Dollar strength and domestic issues have kept the NZD below last year's highs. However, robust labor markets in both New Zealand and Australia and an expected...
What causes the yen to fall, and how does it behave against the USD, EUR, and AUD