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Focus on USD/CAD Today – 18th January 2024

Comprehensive USD/CAD Analysis for January 18, 2024

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USD/CAD for 18th January 2024. 


USD/CAD Key Takeaways

  • Inflation of Canada: Canadian inflation accelerated in December, with a year-on-year increase of 3.4%, of which car prices were the main factor in inflation. Rising inflation means the Bank of Canada may maintain its hawkish stance next week. 
  • Attitude of the Bank of Canada: Canadian inflation remains high, and the Canadian dollar has appreciated due to hawkish expectations. However, if the Bank of Canada makes any implicit interest rate cut next week, the Canadian dollar may depreciate again. 

USD/CAD Technical Analysis 

USD/CAD Daily Chart Insights

USD/CAD Daily Chart Insights By Ultima Markets MT4
  • Stochastic Oscillator: The indicator enters the overbought area and begins to consolidate, suggesting that the current bullish sentiment is beginning to slow down. Be wary of the indicator sending a short signal after the exchange rate encounters resistance. 
  • Price Action: The price forms a doji bar after breaking through the 200-day moving average. Be wary that the market will form a bearish bar today, and the exchange rate will have a probability of reversing a downward trend. 

USD/CAD 1-hour Chart Analysis

USD/CAD 1-hour Chart Analysis By Ultima Markets MT4
  • Stochastic Oscillator: The indicator enters the oversold area, suggesting that the market may correct in the short term. Wait for the indicator to send out a short signal again and then focus on short selling opportunities. 
  • Price Action: The price formed a clear top pattern, and then the exchange rate fell below the support price formed by the neckline and the red 33-period moving average. The short-term trend of the USDCAD is relatively clear, and the first target below is the black 65-period moving average. 

Trading Central Pivot Indicator

Trading Central Pivot Indicator for USD/CAD
  • According to the trading central in Ultima Markets APP, the central price of the day is established at 1.3525, 
  • Bullish Scenario: Bullish sentiment prevails above 1.3525, first target 1.3540, second target 1.3555; 
  • Bearish Outlook: In a bearish scenario below 1.3525, first target 1.3490, second target 1.3470. 

Conclusion 

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