As we noted in today’s “Fundamental Analysis“, “Given the strong upside momentum, further upside is logical.” USD/CAD is in bull market territory, above the key support level 1.2860. At writing this article, the pair is trading near 1.3545 (slightly below the current level). and the 26-month high 1.3550), in a sustained bull market. The break of the local resistance level 1.3350 will be a confirmation signal of our hypothesis.
The driver of the current movements in the USD/CAD pair may be the release (at 12:30 and 13:45 GMT) of important macro statistics for the US and Canada and the speech (at 18:00) of the Chief from the Powell Fed.
He may make further comments about the Fed’s future monetary policy. If Powell makes any unexpected announcements, market volatility could rise sharply again. If market participants view them as soft, this will lead to a partial fixation of long dollar positions, leading to their corrective decline at the end of the trading week.
In general, investors are willing to further strengthen the dollar, which is also in high demand in this situation of geopolitical tensions in Europe as a defensive asset.
*) for next week’s events, see Key economic events of the week 26.09.2022 – 02.10.2022
Support levels: 1.3462, 1.3450, 1.3320, 1.3227, 1.3125, 1.3080, 1.2960, 1.2910, 1.2860
Resistance levels: 1.3550, 1.3600
see details -> https://www.instaforex.com/ru/forex_analysis/322549/?x=PKEZZ
signals -> https://www.mql5.com/en/signals/author/edayprofit
see also “Technical Analysis and Trading Recommendations” -> https://t.me/fxrealtrading
