US Dollar weakens, sends USDCAD lower and bearish

Intermediate
  • A Wednesday selloff for the US$ after the Chairman of the Federal Reserve (Fed), Jerome Powell’s Congressional testimony, AND the FOMC Minutes release.
  • The perception of a still very dovish tone from the Fed has seen a weakening US currency.
  • For the USDCAD Forex rate, the US Dollar selloff resumes bearish forces to set n very short-term risks, into mid-July, to the upside.

USDCAD risks to the downside 

A plunge back lower Wednesday from within our firm 1.3137/45 resistance area, to reject upside basing effort from early July, to shift risks back lower for Thursday.

The June plunge through 1.3270 set an intermediate-term bearish trend.

For Today:

  • We see a downside bias for 1.3031; break here aims for 1.3000 and maybe towards 1.2961.
  • But above 1.3101 opens risk up to 1.3137/45.

Intermediate-term Outlook – Downside Risks: We see a downside risk for 1.3064, 1.3000 and 1.2755.

What Changes This? Above key 1.3430/49 shifts the intermediate-term outlook back to neutral; above 1.3565 is needed for an intermediate-term bull theme.

4 Hour USDCAD Chart

usdcad chart

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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