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On August 17th, US President Trump posted on social media that he was unhappy with the USs previous agreement to participate in joint military exercises with South Korea, given his "good relationship" with North Korean leader Kim Jong-un. Trump stated, "These exercises are not only extremely costly, with most of the expenses borne by the United States, but they also send a completely inappropriate and hostile signal to a country that has never been a threat and has maintained respect during my presidency." Trump said that since canceling the exercises is now too late, he has "instructed Secretary of War Hergsays to significantly reduce the scale of these joint US-South Korea military exercises." Trump also stated that he recently inquired with the South Korean president whether he would be willing to work with the US to "promote the denuclearization of Iran," but South Korea refused.Conflict Situation: 1. Iran claims US troops have been expelled from the Strait of Hormuz. 2. According to Sky News: Yemeni sources revealed that Yemeni air defense forces responded to a Houthi drone attack over Mocha, Hodeidah province. 3. According to the Jerusalem Post: The Israel Defense Forces killed senior Hezbollah commander Abu Hassan Alaa in a weekend attack on the Deir Zahrani region in southern Lebanon. 4. According to IRNA: The Iranian Army Chief of Staff stated that they are certain the USS Abraham Lincoln aircraft carrier was hit at least once by Iranian munitions, rendering all its fighter jets unable to take off for a period of time. Peace Talks: 1. The Chairman of the Hamas Political Bureau visited Egypt to discuss the situation in the Gaza Strip. 2. Egyptian President Sisi met with Trumps son-in-law, Jared Kushner, confirming the necessity of resolving the current regional crisis. 3. Inside stories of the US-Iran negotiations were exposed by US media, revealing that the Trump administration bypassed Iranian negotiators to contact the Revolutionary Guard. 4. US media: Kushner met with Hamas leaders in Egypt on Sunday and pressured them to begin fulfilling their commitments to disarm. Kushner is expected to arrive in Israel on Monday and meet with Netanyahu to discuss the "reciprocal measures" Israel needs to take. 5. According to Al Jazeera: Palestinian sources revealed that Kushner has informed the Hamas leadership that Trump believes disarming the various factions is a crucial step before any further action in Gaza. Other matters: 1. Iranian parliament passes anti-infiltration bill. 2. Israels post-war economy recovers rapidly, with Q2 GDP surging 15.4%. 3. Iranian Army Commander-in-Chief: $30,000 reward for capturing or killing US troops. 4. Iran claims three pilots have been detained by Qatar; Qatar denies this. 5. Israeli security sources revealed that the Israeli military is preparing for a possible escalation of the situation in Lebanon. 6. Israeli Defense Minister: We will not leave any unresolved issues on any battlefield; we will do everything in our power to protect our soldiers and citizens. 7. Iranian media Fars News: The Deputy Political Commander of the Iranian Revolutionary Guard stated that their actions have so far been defensive; however, they may shift to offensive tactics in the future. 8. According to Irans Tasnim News Agency: The Iranian Revolutionary Guard stated that Qatar should allow an Iranian team of experts to investigate the missing pilots disappearance, instead of denying that the pilot was detained. 9. Egypt, Jordan, the UAE, Qatar, Indonesia, Saudi Arabia, Turkey, and Pakistan issued a joint statement condemning Israels rejection of US President Trumps plans for Gaza.On August 17th, local time, US President Trump posted on his social media platform "Real Social" on August 16th, welcoming the recent signing of a joint defense agreement between Saudi Arabia, Turkey, and Pakistan. Trump stated that the agreement demonstrates strengthening unity in the Middle East, enabling countries to defend themselves in a "more effective way." He also congratulated the leaders of Saudi Arabia, Turkey, and Pakistan, calling the agreement a "bold and important first step."US President Trump: I am unhappy that the United States agreed to conduct joint military exercises with South Korea a long time ago. I have instructed Secretary of War Hergsays to significantly reduce joint military exercises.US President Trump: I am very pleased to see that Saudi Arabia, Türkiye and Pakistan have finally signed the Mecca Joint Defense Agreement.

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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