Solid ECN
Well-known member
USDCAD
Growth before the decision on the interest rate of the US Fed
The American currency shows flat trading dynamics in tandem with the Canadian dollar, consolidating near 1.2835. The day before, USDCAD showed an active decline, retreating from local highs since the end of December 2021, which was caused by investors fixing long positions in anticipation of the publication of the final protocols of the US Federal Reserve. The consolidated forecast assumes an increase in the interest rate by 50 basis points at once; in addition, the US regulator is likely to announce the start of a program to reduce its balance sheet in the amount of almost 9 trillion dollars. It is possible that officials may decide to take more active steps aimed at tightening monetary policy, as well as adjust their plans for the near future.
This week statistics on the national labor markets of the US and Canada traditional for the beginning of the month will be published. Both reports will appear on Friday and may have a significant impact on the dynamics of the trading instrument. Forecasts suggest that the US economy created about 400K jobs in April, which is slightly lower than the previous value of 431K, while the Unemployment Rate may fall from 3.6% to 3.5%. An increase in the Number of Employed in Canada by 55K people is expected, which is also worse than last month's data, when the figure was 72.5K; however, the Unemployment Rate may also correct from 5.3% to 5.2%.
On the daily chart, Bollinger Bands are steadily growing. The price range slightly expands from above, but remains too spacious for the current flat nature of trading. MACD is reversing into a descending plane, forming a weak sell signal (trying to consolidate below the signal line). Stochastic shows a more confident decline, signaling in favor of the development of the correctional decline in the ultra-short term.
Resistance levels: 1.2850, 1.2900, 1.2950, 1.3 | Support levels: 1.28, 1.275, 1.27, 1.265
Growth before the decision on the interest rate of the US Fed
The American currency shows flat trading dynamics in tandem with the Canadian dollar, consolidating near 1.2835. The day before, USDCAD showed an active decline, retreating from local highs since the end of December 2021, which was caused by investors fixing long positions in anticipation of the publication of the final protocols of the US Federal Reserve. The consolidated forecast assumes an increase in the interest rate by 50 basis points at once; in addition, the US regulator is likely to announce the start of a program to reduce its balance sheet in the amount of almost 9 trillion dollars. It is possible that officials may decide to take more active steps aimed at tightening monetary policy, as well as adjust their plans for the near future.
This week statistics on the national labor markets of the US and Canada traditional for the beginning of the month will be published. Both reports will appear on Friday and may have a significant impact on the dynamics of the trading instrument. Forecasts suggest that the US economy created about 400K jobs in April, which is slightly lower than the previous value of 431K, while the Unemployment Rate may fall from 3.6% to 3.5%. An increase in the Number of Employed in Canada by 55K people is expected, which is also worse than last month's data, when the figure was 72.5K; however, the Unemployment Rate may also correct from 5.3% to 5.2%.
On the daily chart, Bollinger Bands are steadily growing. The price range slightly expands from above, but remains too spacious for the current flat nature of trading. MACD is reversing into a descending plane, forming a weak sell signal (trying to consolidate below the signal line). Stochastic shows a more confident decline, signaling in favor of the development of the correctional decline in the ultra-short term.
Resistance levels: 1.2850, 1.2900, 1.2950, 1.3 | Support levels: 1.28, 1.275, 1.27, 1.265
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