Daily Analysis For USD/CAD  08-05-2023

Daily Analysis For USD/CAD 08-05-2023

USD/CAD Analysis
Economic Events and Scenario for USD/CAD
Economic Events : -
00:50(Japan) BoJ Monetary Policy Meeting MinutesMediumJPY
01:00(France) Victory in Europe DayNoneEUR
01:00(United Kingdom) Bank Holiday for the coronation of King Charles IIINoneGBP
01:30(Japan) Jibun Bank Services PMIMediumJPY
01:30(Japan) Jibun Bank Composite PMILowJPY
02:30(Australia) Building Permits MoMMediumAUD
02:30(Australia) Private House Approvals MoMLowAUD
02:30(Australia) Building Permits YoYLowAUD
02:30(Australia) NAB Business ConfidenceHighAUD
06:00(Estonia) Inflation Rate YoYLowEUR
06:00(Estonia) Inflation Rate MoMLowEUR
06:00(Estonia) CPILowEUR
07:00(Finland) Balance of TradeLowEUR
07:00(Germany) Industrial Production MoMMediumEUR
09:00(Australia) Myfxbook AUDUSD SentimentMediumAUD
09:00(Switzerland) Myfxbook USDCHF SentimentMediumCHF
09:00(Japan) Myfxbook USDJPY SentimentMediumJPY
09:00(European Union) Myfxbook EURUSD SentimentMediumEUR
09:00(United Kingdom) Myfxbook GBPUSD SentimentMediumGBP
09:00(Canada) Myfxbook USDCAD SentimentMediumCAD
09:00(New Zealand) Myfxbook NZDUSD SentimentMediumNZD
10:00(Greece) Balance of TradeLowEUR
10:30(Germany) 3-Month Bubill AuctionLowEUR
11:00(Spain) Consumer ConfidenceMediumEUR
11:00(Latvia) Industrial Production MoMLowEUR
11:00(Latvia) Industrial Production YoYLowEUR
15:00(El Salvador) Inflation Rate YoYLowUSD
15:00(El Salvador) Inflation Rate MoMLowUSD
15:00(United States) Wholesale Inventories MoMLowUSD
16:00(United States) Consumer Inflation ExpectationsLowUSD
16:30(United States) 3-Month Bill AuctionLowUSD
16:30(United States) 6-Month Bill AuctionLowUSD
23:45(New Zealand) Electronic Retail Card Spending MoMLowNZD
23:45(New Zealand) Electronic Retail Card Spending YoYLowNZD

Today's Scenario: - The USD/CAD pair initially dropped to near 1.3370 during the early Asian session, but has since found some support. However, it is expected to continue its downward trend due to rising oil prices and the expectation that the Federal Reserve will pause its policy-tightening measures. Additionally, strong labor market data from Canada has renewed fears of more interest rate hikes from the Bank of Canada. In April, Canada's Net Change in Employment was 41.4K, beating expectations of 20K, and the Unemployment Rate dropped to 5.0%, lower than the expected 5.1%. Annual Average Hourly Earnings remained steady at 5.2%.

Buy Scenario: - On the buying side for the USD/CAD Alternatively, if the pair rebounds and rises above the high on April 10 at 1.3554, it could potentially target the high on January 05 at 1.3595. If it breaks above this level, it could target the high on April 26 at 1.3651. Till we do not advise to buy USD/CAD.

Sell Scenario: - The USD/CAD pair is currently in a Symmetrical Triangle chart pattern on a daily timeframe, which signifies a reduction in volatility followed by an eventual increase in the same. The trendline of the pattern that is sloping downwards is connected from the high on October 10, 2022, at 1.3978, while the trendline that is sloping upwards is linked from the low on November 15, 2022, at 1.3226.
The 20-period Exponential Moving Average (EMA) at 1.3500 is closely aligned with the price of the Loonie, indicating a decrease in volatility.
The Relative Strength Index (RSI) (14) has marginally fallen below the bearish range of 20.00-40.00, and a continued decline below this range could potentially accelerate bearish momentum.
Looking ahead, if the USD/CAD pair falls below last week's low at 1.3371, it could extend its decline towards the low on April 17 at 1.3343, followed by the support level at 1.3300. Till we do not advise to sell USD/CAD.

Support and Resistance Level: -
S1 1.3317-R1 1.3487
S2 1.3259-R2 1.3599
S3 1.3146-R3 1.3657


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