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USD/CAD: bears are trying to win
Information is not investment advice
USD/CAD is actively testing levels below the July-September support line. In addition, it has slipped below all the key daily MAs (200, 100, and 50). The price action that has been unfolding since the start of September so far corresponds to the bullish harmonic “Shark” pattern, which implies that the price should decline to the 1.3125/20 area (50-month MA, 200-week MA) first to complete the pattern before turning higher.
The disappointing data from the United States which increases the odds of the Fed’s rate cut in October and the better-than-expected figures from Canada may be the drivers of the short-term movement to the downside. Watch for the break below the support at 1.3180 to trigger the move to the mentioned downside targets.
If USD/CAD returns above 1.3230 (100-day MA), bulls will regain power and we’ll have to rethink the situation.
A United Nations agency is warning that the central bank’s actions create a high risk of pushing the global economy into recession.
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.