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January 15th - The Federal Reserves Beige Book showed that overall economic activity in eight of the 12 Federal Reserve districts increased at a slight to moderate pace, three districts reported no change, and one district reported a moderate decline. This is an improvement over the previous three reporting periods, when most districts reported little change in economic activity. The Beige Book indicated a slightly optimistic outlook for future activity, with most districts expecting modest to moderate growth in the coming months. The Beige Book also showed that most banks reported slight to moderate growth in consumer spending this period, primarily due to the holiday shopping season; recent employment conditions were largely unchanged, with eight of the 12 districts reporting no change in hiring activity; and prices increased at a moderate pace in the vast majority of districts, with only two districts reporting slight price increases. Cost pressures from tariffs were a common problem across all districts.Market news: A U.S. judge has refused to immediately grant Minnesotas request to block ICE enforcement operations in the state.According to the Wall Street Journal, senior European diplomats are “completely confused” about U.S. plans regarding Iran.A U.S. court said a judge will rule on Thursday via telephone hearing on the request for a temporary injunction against Statoils offshore wind farm.On January 15th, the Polish Foreign Ministry issued a statement on the evening of January 14th, urging Polish citizens to leave Iran immediately and advising against travel to Iran. That same evening, the Italian Foreign Ministry also issued a statement urging its citizens to leave Iran. Also that day, the Spanish Foreign Ministry announced that the Spanish government had formally advised all its citizens currently in Iran to leave the country as soon as possible. Reports also indicated that the UK had closed its embassy in Tehran. Previously, the United States, France, and other countries had issued similar security warnings.

USD/CAD Price Analysis: Retracement Moves Seek Confirmation at 1,3000

Alina Haynes

May 13, 2022 10:00

USD/CAD consolidates recent advances while retreating from its highest level since November 2020, reaching a fresh intraday low around 1.3010 during the Asia session on Friday.

 

In doing so, the Loonie pair depicts a pullback from a four-day-old resistance line, which was near 1.3080 at the time of publication.

 

Given that the downward-sloping RSI (14) line is not oversold, the most recent price downturn may continue for a while longer before reaching any important support.

 

However, a junction of the 100-HMA and a one-week-old ascending trend line at 1.2995 is a formidable obstacle for USD/CAD bears.

 

In the event that the price falls below 1.2995, various levels surrounding 1.2920-10, including the high from early May and the 200-hour moving average, will attract pair sellers.

 

In contrast, a decisive breach of the aforementioned short-term resistance line of 1.3080 would require confirmation from the 1.3100 level before going for the peak of 1.3172 in late November 2020.

 

In conclusion, USD/CAD decline is not indicative of a trend reversal until the quotation breaks 1.2920.

The USD/CAD Hourly Graph

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