- 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.
- 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