In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDCAD for 24th April 2024.
Key Takeaways
- Bank of Canada meeting minutes: Bank of Canada is expected to release the meeting minutes for its previous policy meeting soon. Previously, Canada’s inflation in March rose slightly, with expectation for a possible rate cut in June. Currently, expectation for a rate cut in June rose stands at 65%. For the time being, focus will be placed on the meeting minutes to see the likelihood of rate cuts and further policy guidance.
- Crude oil prices: Oil price rebounded slightly, boosting Canadian dollar in the process due to its status as a commodity-linked currency. Rising oil prices may alleviate Canada’s external inflationary pressure which in return stabilizes its local domestic prices.
Technical Analysis
Daily Chart Insights
- Stochastic oscillator: The pair extended its downside bias following the formation of bearish signal on Wednesday. With the signal line approaching 50-midline, we may see a continuation in downside bias for short-term.
- Support line: Yesterday, the pair fell below the green upward trendline, indicating a change in structural momentum towards the downside. Next target will be looking towards the black support line which coincides with 33-MA line (red).
4-hour Chart Analysis
- Stochastic oscillator: The indicator oscillates within the oversold threshold, suggesting a possible end to downside bias with a higher tendency for a rebound.
- Head and shoulders pattern: The pair breakthrough its previous green neckline of head and shoulders pattern, signifying downside bias for mid-term. With overall price action continuing to show weakness, the next target to look ahead will be around 1.3635, which is the previous strong support .
- Moving average pattern: The short-term 33-MA line (red) is expected to cross over 65-MA line (black), which theoretically forms bullish crossover. This signal hints for a possible reversal towards the upside in the short term.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 1.3690,
- Bullish Scenario: Bullish sentiment prevails above 1.3690, first target 1.3715, second target 1.3740;
- Bearish Outlook: In a bearish scenario below 1.3690, first target 1.3645, second target 1.3625.
Conclusion
To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey.
For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets.
Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets.
Stay tuned for more updates and analyses from our team of experts at Ultima Markets.
—–
Legal Documents
Ultima Markets, a trading name of Ultima Markets Ltd, is authorized and regulated by the Financial Services Commission “FSC” of Mauritius as an Investment Dealer (Full-Service Dealer, excluding Underwriting) (license No. GB 23201593). The registered office address: 2nd Floor, The Catalyst, 40 Silicon Avenue, Ebene Cybercity, 72201, Mauritius.
Copyright © 2024 Ultima Markets Ltd. All rights reserved.
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.
