Instrument: USDCAD
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 1.23923 with take profit at 1.24112.
Bearish Preference:
Sell position is envisaged if price trades below 1.23321 with take profit at 1.23041.
Fundamentals:
None with high impact on the pair.
Comment: In Canada, ADP Employment Change report indicated that employment increased by 101,600 jobs in May compared to analyst forecast of 250,000.
The reports had little impact on currency dynamics on the foreign exchange market as traders focused on the new data from the Fed which showed that the Fed expected two rate hikes in 2023.
Canadian dollar received a double blow from the Fed and the sell-off in commodity markets, so USD/CAD managed to get from 1.2200 to 1.2350 in just two trading sessions. If the sell-off in commodity markets continues, Canadian dollar and other commodity-related currencies will move lower.
Analysis: SCRUM Team