On H4, the quotes are under the 200-day Moving Average, indicating prevalence of a downtrend. The RSI is approaching the resistance level. A test of 1/8 (0.9338) is expected here, followed by a bounce off it and falling to the support level of -1/8 (0.9216). The scenario can be cancelled by a breakaway of 1/8 (0.9338) upwards, which might lead to a trend reversal and growth of the pair to the resistance level of 2/8 (0.9399).
On M15, an additional signal confirming the decline will be a breakaway of the lower border of VoltyChannel.
XAUUSD, “Gold vs US Dollar”
On H4, Gold quotes are in the overbought area. The RSI is nearing the descending trendline that acts as a resistance level. Hence, a downward breakaway of 8/8 (1875.50) should be expected, followed by falling to the support level of 6/8 (1843.75). The scenario can be cancelled by rising over the resistance level of +1/8 (1890.62). This might provoke further growth of the quotes to +2/8 (1906.25).
On M15, a breakaway of the lower border of VoltyChannel will increase the probability of further falling.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
Important inflation data will be released in the US today. Economists expect the consumer price index to fall from 7.1% to 6.5% year-over-year in December. If the actual data match the forecast, the dollar index could fall even more. But if the data is worse than expected, especially for core inflation, which excludes food and energy prices, the situation could be reversed. In this case, the dollar index would likely show impulse up, while the euro would collapse.
Trading recommendations
Support levels: 1.0650, 1.0597, 1.0535, 1.0497, 1.0480, 1.0361, 1.0332, 1.0284
Resistance levels: 1.0799, 1.0844
The trend on the EUR/USD currency pair on the hourly time frame is still bullish. The price is trading above the moving averages and forming a narrow price balance. Volatility on the eve of the news has declined sharply. The MACD indicator is in the positive zone, but there are signs of divergence, which means that price growth is limited, and a correction should be expected to find good entry points. Under such market conditions, buy trades are better to consider from the support level of 1.0650 or 1.0597 with confirmation on intraday time frames. Sell deals can be considered from the daily resistance level of 1.0799, but better with a confirmation in the form of a reverse initiative or a false breakout.
Alternative scenario: if the price breaks down through the support level of 1.0535 and fixes below it, the downtrend will likely resume.
News feed for 2023.01.12:
– US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
– US Consumer Price Index (m/m) at 15:30 (GMT+2).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2147
Prev Close: 1.2147
% chg. over the last day: 0.00 %
The situation on the GBP/USD currency pair remains the same. Economists are betting on the fall of GBP/USD quotes ahead of important US inflation data and UK GDP data on Friday. The economic outlook for the United Kingdom remains gloomy. In this case, the Bank of England has almost no options. Interest rates need to rise further to lower inflation. But an increase in rates will have a negative impact on the economy, which will cause GDP to fall even further. Finding a middle ground in such a situation is extremely difficult.
Trading recommendations
Support levels: 1.2080, 1.2000, 1.1928, 1.1875, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2193, 1.2308, 1.2431, 1.2519
From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bullish. The price is trading in a narrow range above the moving averages. The MACD indicator is positive again, there is some buying pressure inside the day, but volatility has decreased ahead of the inflation data. In such market conditions, it is better to look for buy trades on intraday time frames from the support at 1.2080 or 1.1999, but with confirmation. Sell trades are best looked for from the resistance level of 1.2193 or the stronger level of 1.2238, but also better with confirmation in the form of a false breakout or a change in the structure on the lower time frames.
Alternative scenario: if the price breaks down through the 1.1875 support level and fixes above it, the downtrend will likely resume.
News feed for 2023.01.12:
– US Consumer Price Index (m/m) at 15:30 (GMT+2).
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 132.09
Prev Close: 132.48
% chg. over the last day: +0.29 %
Former Bank of Japan (BoJ) policy council representative Sayuri Shirai called for a review of the bank’s policy over the past 10 years in light of the changing inflationary picture, which could cause prices to remain high for longer than expected, leading to negative consequences for the economy. The current term of Bank of Japan Governor Haruhiko Kuroda comes to an end in April, and Shirai is widely seen as a candidate for deputy governor. Traders need to understand that any even insignificant shifts of the Bank of Japan in the direction of changing the monetary policy can lead to a significant movement of the Japanese yen.
From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish. Now the price is trading below the levels of the moving averages, while the MACD indicator is negative again, but there are the first signs of divergence. The corrective wave is coming to an end. It is best to look for buy trades from the support levels of 131.12 or 130.58, but only with intraday confirmation. Sell deals can be searched for from the resistance level of 132.37 or 133.23 on the condition of a reverse reaction or false breakout.
Alternative scenario: If the price fixes below the support level of 130.58, the downtrend will likely resume.
News feed for 2023.01.12:
– US Consumer Price Index (m/m) at 15:30 (GMT+2).
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3424
Prev Close: 1.3423
% chg. over the last day: 0.00 %
A 3% rise in oil prices did not help the Canadian currency to strengthen significantly on Wednesday. Investors are taking no chances ahead of US inflation data, which will be crucial to the short-term direction of the USD/CAD. USD/CAD quotes are trading in a tight corridor for now. A decline in inflation in the US against the background of oil price growth may provoke the strengthening of the Canadian currency (decrease of USD/CAD).
From the point of view of technical analysis, the trend on the USD/CAD currency pair is bearish. The price is trading in a narrow trading range at the level of moving averages in front of the resistance level of 1.3492. The MACD indicator has become inactive. Under such market conditions, it is best to wait for the price to exit the narrow range. Buy trades should be considered after the breakout of 1.3439, but only with short targets and confirmation. Sell deals are better to look for on intraday time frames from the resistance level of 1.3492 or 1.3513, but with a confirmation in the form of a reverse initiative on the lower time frames.
Alternative scenario: if the price breaks out and consolidates above the resistance level of 1.3632, the uptrend will likely resume.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
A sense of anticipation gripped financial markets today as investors prepared for the US inflation data on Thursday.
Market players remain hopeful that inflation may have cooled further in December and this seems to be supporting global equity markets. In the currency space, the dollar remains firm while gold has struggled to conquer the $1880 resistance level. With less than 24 hours until the key US inflation report is published, markets may remain on standby waiting for a fundamental spark. Despite the expected lack of action over the next few hours, this period of calm could help identify some potential opportunities before the CPI storm!
EURUSD waiting for softer USD?
This currency pair remains firmly bullish on the daily timeframe as there have been consistently higher highs and higher lows. Prices are trading above the 50, 100, and 200-day SMA while the MACD trades above zero. The recent breakout above 1.0700 could signal further upside with 1.0770 with 1.0900 acting as key levels of interest. Should prices slip back under 1.0700, the currency pair could experience a selloff towards 1.0505.
GBPUSD trapped within a range
It seems like the GBPUSD remains trapped within a very wide range on the daily charts. Support can be found at 1.1900 and resistance at 1.2210. A potent fundamental spark may be needed for the currency pair to resume the uptrend or experience a reversal lower. The pending US inflation report could inject fresh life into the GBPUSD, with a softer inflation report favour GBPUSD bulls. Looking at the technical picture, a strong breakout above 1.2210 may signal an incline toward 1.2300 and 1.2460, respectively.
USDJPY breakout on horizon
As the subtitle says, the USDJPY could be gearing up for a breakout. Prices remain trapped within a 450 range with bulls and bears waiting for a direction catalyst. This may come in the form of the pending US inflation data which may determine the USDJPY’s short-term outlook. A solid breakout and daily close below 130.00 could signal a selloff towards 127.00. Should prices push back above 134.50, the next key level of interest can be found at 138.00.
On H4, at the resistance level, the pair has formed a Harami reversal pattern. Currently, the pair may go by the signal in the form of a correctional wave. The goal of the pullback might be 1.0700. However, the price may grow to 1.0820, break through it, and continue the uptrend without any correction.
USDJPY, “US Dollar vs Japanese Yen”
On H4, the currency pair has formed a Hammer reversal pattern. Currently, the pair may go by the pattern in an ascending wave. The goal of the growth might be 133.10. However, the price may drop to 131.00 and continue the downtrend without correcting to the resistance level.
EURGBP, “Euro vs Great Britain Pound”
On H4, the pair has formed a new Inverted Hammer pattern. Currently, the pair is going by the signal in the form of an ascending wave. The goal of the growth might be the resistance level of 0.8890. Upon testing it and breaking through it, the price will get the chance to continue the uptrend. However, the quotes may pull back to 0.8800 before growth.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
In his speech at the banking symposium in Sweden, Federal Reserve Chairman Jerome Powell did not provide any new information on monetary policy but pointed to the central bank’s resolve, saying unpopular decisions may be needed to reduce inflation. At the same time, ECB spokeswoman Ms. Schnabel indicated yesterday that the ECB’s restrictive monetary policy stance would benefit society in the medium to long term by restoring price stability. As a result, economists expect the US Federal Reserve to reduce the pace of rate hikes to 0.25%, while the ECB will raise the rate by 0.5% at its next meeting amid declining inflationary pressures in the United States.
Trading recommendations
Support levels: .0650, 1.0597, 1.0535, 1.0497, 1.0480, 1.0361, 1.0332, 1.0284
Resistance levels: 1.0799, 1.0844
The trend on the EUR/USD currency pair on the hourly time frame is still bullish. The price is trading above the moving averages and forming a narrow price balance. The MACD indicator is in the positive zone, but there are signs of overbought, so it is worth waiting for a correction to find good entry points. Under such market conditions, buy trades are best considered from the support level of 1.0650 or 1.0597 with confirmation on intraday time frames. Sell deals can be considered from the daily resistance level of 1.0799, but better with a confirmation in the form of a reverse initiative or a false breakout.
Alternative scenario: if the price breaks down through the support level of 1.0535 and fixes below it, the downtrend will likely resume.
There is no news feed for today.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2176
Prev Close: 1.2149
% chg. over the last day: -0.22 %
Economists are betting on a fall in GBP/USD quotes ahead of important US inflation data and UK GDP data on Friday. The economic outlook for the United Kingdom remains bleak. The Bank of England will raise the rate in minimal steps so as not to put even more pressure on the economy.
Trading recommendations
Support levels: 1.2080, 1.2000, 1.1928, 1.1875, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2193, 1.2308, 1.2431, 1.2519
From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bullish. The price is trading in a narrow range above the moving averages. The MACD indicator has become inactive, and volatility on the eve of the US inflation data has decreased. Under such market conditions, it is better to look for buy trades on intraday time frames from the support level of 1.2080, but with confirmation. Sell trades are best looked for from the resistance level of 1.2193 or the stronger level of 1.2238, but also better with confirmation in the form of a false breakout or a change of structure on the lower timeframes.
Alternative scenario: if the price breaks down through the 1.1875 support level and fixes above it, the downtrend will likely resume.
There is no news feed for today.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 131.82
Prev Close: 132.23
% chg. over the last day: +0.31 %
The Japanese yen has changed little against the US dollar this week. Investors are trying to predict the next moves of the Bank of Japan and the US Federal Reserve. The US Fed plans to raise the rate to a final point of 5% to 5.25%. But when the Bank of Japan starts to change its monetary policy is an open question. At the moment, experts are inclined to believe that the Bank of Japan will “reverse” when the governor is re-elected in April 2023. However, it should be noted that the difference in interest rates between the central banks of the US and Japan is still huge. Until this difference starts decreasing, traders should not expect anything “abnormal” from the Japanese Yen.
From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish. The price is now trading at the level of the moving averages, while the MACD indicator has become inactive. The correctional wave is approaching its end. Buy trades are best viewed from the support levels of 131.12 or 130.58, but only with intraday confirmation. Sell deals can be searched for from the resistance level of 133.23 on the condition of a reverse reaction or false breakout.
Alternative scenario: If the price fixes below the support level of 130.58, the downtrend will likely resume.
There is no news feed for today.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3380
Prev Close: 1.3426
% chg. over the last day: -0.34 %
Data from the American Petroleum Institute showed that US crude oil inventories more than quadrupled in the first week of 2023 compared to the previous week. Rising inventories tend to put downward pressure on oil prices, which in turn weakens the Canadian dollar, which is a commodity currency. Another, more important, report on crude oil inventories will be released today, where a decline in inventories is expected.
From the point of view of technical analysis, the trend on the USD/CAD currency pair is bearish. The price is trading at the level of moving averages. The MACD indicator has become inactive, but buyer pressure is very weak. Buy trades should be considered from the support level of 1.3362, but only with short targets and confirmation in the form of a false breakdown since the level has been tested before. Sells deals are better to look for on the intraday time frames from the resistance level of 1.3492 or 1.3513, but with a confirmation in the form of a reverse initiative on the lower time frames.
Alternative scenario: if the price breaks out and consolidates above the resistance level of 1.3632, the uptrend will likely resume.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
The currency pair has left the borders of the descending channel. The instrument is going above the Ichimoku Cloud, which suggests an uptrend. A test of the upper border of the Cloud at 1.2010 is expected, followed by growth to 1.2425. An additional signal confirming the growth will be a bounce off the upper border of the descending channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 1.1905, which will mean further falling to 1.1810.
XAUUSD, “Gold vs US Dollar”
The instrument is pushing off the Tenkan-Sen line. Gold is going above the Ichimoku Cloud, which suggests an uptrend. A test of the upper border of the Cloud at 1840 is expected, followed by growth to 1945. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 1810, which will mean further falling to 1765.
USDCHF, “US Dollar vs Swiss Franc”
The currency pair has secured under the support level. The instrument is going below the Ichimoku Cloud, which suggests a downtrend. A test of the Tenkan-Sen line at 0.9225 is expected, followed by falling to 0.9045. An additional signal confirming the decline will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the upper border of the Cloud and securing above 0.9350, which will mean further growth to 0.9445.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
The first week of the year was really volatile for the market major. On Monday, it recovered and secured near 1.0680.
The reason for the nervous reaction was publication of the minutes of the US Fed’s meeting. The document mentioned inadequacy of emotional conclusions based on just the Fed’s decision to fight with inflation. As a result of all this, the USD got stronger.
Next, December reports on the US labour market came out. The unemployment rate dropped to 3.5%, though no changes had been anticipated. The NFP grew to 223 thousand instead of 200 thousand expected. The average wage growth decreased to 0.3% m/m from 0.6%. All this was good, but later the ISM report was released, and it demonstrated a serious decline in December. This sent the USD down – it could not ignore the fact that the economy keeps slowing down.
On H4, EUR/USD completed a wave of decline to 1.0482. Today the market has completed an impulse of growth to 1.0635. At the moment, the market has formed a consolidation range around this level. With an escape upwards, a pathway for a wave of growth to 1.0766 opened. After the pair reaches the level, a correction to 1.0635 should begin, followed by growth to 1.0785. Technically, this scenario is confirmed by the MACD: its signal line is directed strictly upwards, which suggests the continuation of a wave of growth.
On H1, EUR/USD has formed an impulse of growth to 1.0634. The market has formed a consolidation range around it. With an escape upwards, a pathway for the wave of growth to 1.0766 opened. The goal is local. Technically, the scenario is confirmed by the Stochastic oscillator. Its signal line is above 80. After the target level is reached, a link f decline to 50 is expected.
Disclaimer
Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
The currency pair has completed a wave of correction to 1.0510. The market has got support there, and the wave of growth might continue to 1.0804. The goal is local. After it is reached, a link of correction to 1.0222 is not excluded. Then a new structure of growth to 1.0900 should develop.
GBPUSD, “Great Britain Pound vs US Dollar”
The currency pair completed a wave of correction to 1.1840. Upon getting support there, the market continues developing a wave of growth to 1.2320. After this level is reached, a new link of correction to 1.2220 is not excluded, followed by growth to 1.2777.
USDJPY, “US Dollar vs Japanese Yen”
The currency pair completed a wave of decline to 129.70. At the moment, the market has formed an impulse of growth to 134.76. Today it has completed a link of decline to 131.71. A consolidation range is expected to form around this level. With an escape downwards, another structure of decline to 128.73 may develop. With an escape upwards, the wave of growth might continue to 138.51.
BRENT
Crude oil has completed a wave of correction to 86.40 and a link of growth to 82.60. After this level is reached, a decline to 72.60 might follow. Then a wave of growth to 100.00 might develop, from where the wave might continue to 127.45.
XAUUSD, “Gold vs US Dollar”
Gold has corrected to 1833.30. Getting support there, the market is developing a wave of growth. The quotes might then reach 1900.00, after which a correction to 1800.00 might follow.
S&P 500
The stock index has completed an impulse of decline to 3763.0. Today the market is forming a link of correction. Growth to 3953.4 looks possible. After this level is reached, the quotes might fall to 3550.5, then grow to 3752.0, and then decline to 3344.0.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
The currency pair is pushing off the upper border of the descending channel. The instrument is going above the Ichimoku Cloud, which suggests an uptrend. A test of the lower border of the Cloud at 1.0605 is expected, followed by growth to 1.0810. An additional signal confirming the growth will be a bounce off the upper border of the descending channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 1.0555, which will mean further falling to 1.0465.
BRENT
Crude oil is testing the signal lines of the indicator. The instrument is going below the Ichimoku Cloud, which suggests a downtrend. A test of the Kijun-Sen line at 81.00 is expected, followed by falling to 72.65. An additional signal confirming the decline will be a bounce off the upper border of the descending channel. The scenario can be cancelled by a breakaway of the upper border of the Cloud and securing above 85.00, which will mean further growth to 90.00.
USDCAD, “US Dollar vs Canadian Dollar”
The pair has secured under the lower border of the descending channel. The instrument is going below the Ichimoku Cloud, which suggests a downtrend. A test of the broken border of the channel at 1.3430 is expected, followed by falling to 1.3255. An additional signal confirming the decline will be a bounce off the lower border of the bearish channel. The scenario can be cancelled by a breakaway of the upper border of the Cloud and securing above 1.3655, which will mean further growth to 1.3620.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
Falling energy prices in the Eurozone (especially natural gas prices) helped weaken the overall inflation rate. On an annualized basis, the Eurozone’s overall inflation rate fell from 10.1% to 9.2%. Core inflation (which excludes food and energy prices) also fell from 5.1% to 5.0% year over year. But the detailed report indicates that price pressures in non-energy sectors are rising, especially for food. This indicates that inflation is still strong.
Trading recommendations
Support levels: 1.0650, 1.0589, 1.0535, 1.0497, 1.0480, 1.0361, 1.0332, 1.0284
Resistance levels: 1.0695
The trend on the EUR/USD currency pair on the hourly time frame is still bullish. The price is trading above the moving averages. The MACD indicator is in the positive zone, but there are signs of overbought, so it is worth waiting for a correction to find good entry points. Under such market conditions, buy trades are best considered from the support level 1.0650 or 1.0589 with confirmation on intraday timeframes. Sell deals can be considered from the resistance level of 1.0695 but better with confirmation in the form of a reverse initiative or a false breakout
Alternative scenario: if the price breaks down through the support level of 1.0497 and fixes below it, the downtrend will likely resume.
News feed for 2023.01.09:
– German Industrial Production (m/m) at 09:00 (GMT+2);
– Eurozone Unemployment Rate (m/m) at 12:00 (GMT+2).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.1906
Prev Close: 1.2091
% chg. over the last day: +1.55 %
The non-farm report showed that the US economy added 223,000 jobs, higher than the expected 200,000. The unemployment rate fell to 3.5% from 3.7%, while average hourly earnings fell to 4.6% from a revised 4.8% decline. As the US labor market remains resilient, the Fed can expect to raise rates longer to keep inflation in check. But the dollar Index unexpectedly fell on a strong US labor market report, and this could be a “false” move, as a strong labor market, along with further rate hikes, is the foundation for a stronger dollar. Analysts still expect January and February to be strong months for the dollar and weak for the GBP.
Trading recommendations
Support levels: 1.2100, 1.2000, 1.1928, 1.1875, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2193, 1.2308, 1.2431, 1.2519
From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame has changed to bullish. The price has broken through the priority change level and is trading above the moving averages. The MACD indicator is in the positive zone, and the pressure of buyers remains. Under such market conditions, it is better to look for buy trades on intraday time frames from the support level of 1.2100, but with confirmation. Sell trades are best sought from the resistance level of 1.2193 but also better with a confirmation in the form of a false breakout.
Alternative scenario: if the price breaks down through the 1.1875 support level and fixes above it, the downtrend will likely resume.
There is no news feed for today.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 133.40
Prev Close: 132.08
% chg. over the last day: -0.99 %
Japanese Prime Minister Fumio Kishida said Sunday that his government and the Central Bank should discuss their relationship in guiding economic policy after he picks a new governor for the Bank of Japan (BOJ) in April. This raises the possibility that the government may reconsider its plan to work with the Central Bank and would lay the groundwork for an exit from the BOJ’s ultra-free monetary policy. Japan’s core consumer prices are at 3.7%, and analysts expect inflation to remain above the 2% target in the coming months, making a policy shift after the BOJ governor is re-elected even more likely.
From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish. The price is now trading below the moving averages, while the MACD indicator has become negative, indicating the sellers’ pressure inside the day. The decline now looks like a corrective wave before a new momentum. Buy trades are best considered from 131.12 or 130.58 support levels, but only with intraday confirmation. Sell deals can be searched for from the level of resistance of 132.89 under the condition of a reverse reaction or false breakout.
Alternative scenario: If the price fixes below the support level of 130.58, the downtrend will likely resume.
There is no news feed for today.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3565
Prev Close: 1.3443
% chg. over the last day: -0.91 %
The latest labor market data showed that Canada’s unemployment rate fell from 5.1% to 5.0%, with 627,000 more jobs in Canada now than before the pandemic. Most of the job growth came in the 4th quarter of 2022. But it should be noted that the country’s manufacturing levels are declining. Job growth with rising wages and falling production is an inflationary path for the economy. Therefore, the Bank of Canada will continue raising interest rates to “cool down” the labor market. A 0.25% rate hike is expected at the Bank of Canada’s next meeting.
From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bearish. The price has again consolidated below the moving averages and below the key support level. The MACD indicator became negative, but it indicates a divergence when the price reached the support level. Buy trades should be considered from the support level of 1.3386, but only with short targets, as entry is against the main priority. Sell deals are best looked for on intraday time frames from the resistance level of 1.3513 or 1.3561, but with confirmation in the form of a reverse initiative on the lower timeframes or a false breakout.
Alternative scenario: if the price breaks out and consolidates above the resistance level of 1.3632, the uptrend will likely resume.
News feed for 2023.01.09:
– Canada Unemployment Rate (m/m) at 15:30 (GMT+2);
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
Article by 
