Chapter 3 IS USACAD Continuing the downtrend?
29/01/2023
Summary
Canadian Dollar Interest rate still drives the market
Fundamental analysis
Canadian data in the economic calendar was released last week (BoC Interest Rate Decision) same as expected at 4.50% the market takes the results as positive for the CAD also the GDP data is coming this Tuesday with positive expectations, On the other hand, the USD coming news show Negative expectation Then the previous month's.
Canada GDP YoY (SA)
Previous 3.1%
Actual 3.5%
USA City House Price Index YoY
Previous 6.64%
Actual 6.8%
Technical analysis
In this 4-hour diagram chart, the market is trending down the price now at 1.33087, We expect the market will pull up to the previous support at 1.341500 to show some action as a fake breakout and the market will fall back to continue the downtrend until the oldest daily demand zone at 1.32700
Trading Recommendation
Trading Direction: Short
Entry Price: 1.34147
Target Price: 1.32731
Stop Loss: 1.34995
