USD/CAD: Rest in peace!
Good afternoon Traders and welcome back to EverythingFX. We may need a moment of silence for this pair, the bears have run riot.
The US Dollar is currently trading at 1.31970 against the Canadian Dollar during today's London session.
Starting on the weekly timeframe we can see the price has been extremely bearish after having that massive weekly engulfing after breaking back below 1.34000. Dropping to a daily timeframe we can see there have been 3 strong bearish daily candles showing us that sellers are back in control.
Dropping to a 4-hour timeframe price has been sliding with little to no pullback at all. There is a minor level of support which has now broken where I favour a potential spike up there to re-test as resistance before completing a new leg to the downside. Our next levels of support for the pair remain 1.31000 and 1.28000 where I do see price heading there next over the next few trading weeks.
Fundamentally eyes were on the Fed who have left interest rates unchanged for now but are aware of the economic slow and are preparing themselves for a potential cut later on in the year. Other than that we can Canadian CPI outperforming all expectations giving a double whammy effort to the pair forcing this pair lower. We keep eyes on US Data releases to see when we could expect a cut from the Fed. Stay tuned to our Market news section and social media platforms for rapid updates!