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On May 10th, Canadian Prime Minister Mark Carney stated at a political conference in Toronto on Saturday that Canada is willing to establish closer trade ties with the United States and Mexico in specific industries to boost the North American economy. He mentioned the "North American Fortress" initiative but did not specify any particular sectors. Carney indicated that if this approach fails, Canada will invest heavily in new markets and new products. The United States, Mexico, and Canada are scheduled to begin reviewing a trade agreement this year. Trump has already imposed tariffs on products such as automobiles and steel, disrupting the closely intertwined supply chains among the three countries. Carney had previously set a goal of doubling exports to countries outside the United States within ten years.The Bahraini Foreign Minister demanded that Iran cease its aggressive and provocative actions against Bahrain and other countries in the region, as well as its egregious interference in their internal affairs.Bahrains Foreign Minister: Bahrain condemns and strongly condemns Irans continued interference in its internal affairs and its actions that threaten the security and stability of the Gulf states.Commander of the Aerospace Force of the Iranian Islamic Revolutionary Guard Corps: The Aerospace Forces missiles and drones have locked onto the enemy, and we are awaiting the order to launch.On May 10th, local time, the final vote count for the 136th Local Council of England was released, completing the election results for the English Local Council, as well as the Scottish and Welsh Parliaments. In this election, both of Britains traditional two major parties, the Labour Party and the Conservative Party, suffered significant setbacks, while the Reform Party, the Green Party, and other parties saw a marked increase in strength, further highlighting the trend of "fragmentation" in British politics. Data shows that in the English Local Council elections, the Reform Party won 1453 seats, becoming one of the biggest winners; the Labour Party won 1063 seats; and the Conservative Party won 801 seats. Analysts believe that this British local election demonstrates that the traditional two-party (Labour and Conservative) dominance in Britain is being significantly challenged. British politics is further developing towards multi-party competition and political fragmentation.

USD/CAD Price Analysis: Loonie Bulls Strengthen as Ascending Triangle Collapses to the Bottom, 1.2400 Targeted

Drake Hampton

Apr 21, 2022 09:37

Since April 14, the USD/CAD pair has had a steep decline following repeated failed efforts to reach a price over 1.2647. The asset has fallen below 1.2500 and appears to be headed for further decline given the price movement.

 

On the downside, an explosion of the ascending triangle chart formation undermined the greenback bulls. The chart pattern's horizontal resistance is drawn from the April 14 high of 1.2642, while the ascending trendline is drawn from the April 14 low of 1.2521. After breaching below the ascending triangle, the asset demonstrated a textbook case of selling.

 

A bear cross of the asset's 20- and 200-period Exponential Moving Averages (EMAs) at 1.2596 sparked a sharp sell-off.

 

The Relative Strength Index (RSI) (14) is swinging in a negative range of 20.00-40.00, indicating that a slight drop is possible as an oversold condition kicks in.

 

Investors should look for a pullback to the 20-EMA at 1.2520, which will provide the best opportunity to sell. After touching the 20-EMA, the asset will be dragged towards March's low of 1.2430, followed by round-level support at 1.2400.

 

On the other hand, bulls of the greenback may reassert control if the asset surpasses Friday's low of 1.2590, which would push the pair toward April 14 and April's highs of 1.2642 and 1.2676, respectively.

USD/CAD Hourly Chart

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