In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDCAD for July 16, 2024.
Key Takeaways
- No new forward guidance signal: Yesterday, Federal Reserve Chair Jerome Powell’s discussion with co-executive Chairman of Carlyle Group failed to provide any new guidance on the timeline of interest rate cut, emphasizing to stay put in August.
- Canadian CPI: The Bank of Canada interest rate decision will be held next Wednesday, leading market participants to shift their focus on June CPI bound to be released later today. If Canada’s inflation slows down substantially, Bank of Canada will most likely cut interest rates next week.
Technical Analysis
Daily Chart Insights
- Stochastic oscillator: The indicator issued bullish signal from oversold region, suggesting further upside in the long-term.
- Resistance structure: Following a rebound from the lower level, the pair closed above several key resistances in the lower time frame while closing above both moving averages. This suggests further upper hand for overall bullish bias.
1-hour Chart Analysis
- Stochastic oscillator: The indicator failed to provide any substantial signal in the overbought region, suggesting possible oscillation in short-term.
- Price Action: Recent price action shows lack of momentum near 1.3687, suggesting strong selling pressure from above. It is advisable to wait for a closure above the resistance level before entering the market for bullish bias.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 1.3649,
- Bullish Scenario: Bullish sentiment prevails above 1.3649, first target 1.3703, second target 1.3717;
- Bearish Outlook: In a bearish scenario below 1.3649, first target 1.3625, second target 1.3611.
Conclusion
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Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
