Slobodan Drvenica
Windsor Brokers
USD/CAD
The USDCAD continues to trend lower and on track for the second straight big weekly loss, as Canadian dollar received fresh boost from unexpected BOC rate hike earlier this week and renewed hawkish stance, which suggests that further tightening is likely, as the central bank estimates that recent measures were not enough efficient to curb high inflation.
Bears were interrupted by negative Canada’s May labor report, released today and showing higher than expected rise in a number of jobless, while employment slumped by 17.3K in May after adding 41.4K new jobs previous month and strongly missed expectations for 23.2K rise.
However, downbeat labor data so far showed limited negative impact on CAD and likely to be insufficient to stronger counter very positive signals from BOC, as policymakers expected inflation to remain elevated and well above 2%, which will likely require further action from the central bank, as markets fully price for another 25 basis points hike in July.
Daily studies show strong rise in negative momentum and MA’s in bearish setup fueling bears, though a number of solid supports within 1.3315/1.3225 zone is expected to produce headwinds, along with oversold daily studies and probably slow bears in coming sessions.
Larger bears are expected to remain in play as long as upticks stay capped under 1.3440 zone.
Next week’s key events (US inflation/Fed rate decision) are expected to provide fresh signals.
Res: 1.3371; 1.3396; 1.3445; 1.3484.
Sup: 1.3320; 1.3301; 1.3262; 1.3225.
Interested in USD/CAD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD loses traction, retreats below 1.0600
EUR/USD lost its recovery momentum and declined below 1.0600 in the American session on Friday, erasing a portion of its daily gains in the process. Nevertheless, the risk-positive market atmosphere after PCE inflation data helps the pair limit its losses.
GBP/USD turns negative on the day below 1.2200
GBP/USD reversed its direction and slumped below 1.2200 in the American session on Friday after rising above 1.2270 earlier in the day. Position readjustments and profit-taking on the last trading day of the quarter seems to be weighing on Pound Sterling.
Gold reverses direction, drops below $1,860
Following a steady rebound toward $1,880 on Friday, Gold price made a sharp U-turn and turned negative on the day near $1,860. Although the 10-year US T-bond yield is down more than 1%, XAU/USD struggles to find demand on the last day of Q3.
Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high
Polkadot price, in nearly two years, has shed 92.91% from its all-time high of $55.09. The massive downswing in DOT has pushed it down to levels that were last seen in October 2020. Hence, the chances of this altcoin forming a bottom and rallying are high.
Earnings beat triggers Nike to spike 9%
Nike (NKE) stock has surged over 9% in Friday’s premarket, climbing above $98 per share, following late Thursday’s fiscal first-quarter earnings release. Nike beat pessimistic earnings expectations by more than 23% and hiked its dividend by 9%.