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USDCAD Analysis

Daily Market Analysis 18.05.2022: USDCAD

Instrument: USDCAD

Technical Analysis

Bullish Preference: 
Buy position is envisaged if price trades above 1.28611 with take profit at 1.28776
Bearish Preference: 
Sell position is envisaged if price trades below 1.27876 with take profit at 1.27696
Fundamentals:
1:30pm     CAD    CPI m/m              
CAD    Common CPI y/y      
CAD    Median CPI y/y          
CAD    Trimmed CPI y/y

Comment: 
The USD/CAD pair prolonged its recent pullback from the highest level since November 2020 touched last week and remained depressed for the third successive day on Tuesday. A general improvement in global risk sentiment – as depicted by the overnight rally in the equity markets – dragged the safe-haven US dollar away from a two-decade high. This, in turn, was seen as a key factor that exerted some pressure on the major, though weaker crude oil prices undermined the commodity-linked loonie and helped limit the downside.

Analysis: SCRUM Team

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