The US dollar index rose to 105.40 after the Fed’s 75-basis-point key rate hike, while the stock and the crypto markets fell. However, during the past few days, investors and traders returned to risk assets as they expect inflation growth to slow. Moreover, Jerome Powell, the head of the Federal Reserve, announced the Fed might start cutting the key rate by 2024, which is the most evident hint of an upcoming market reversal.
USD/CAD: loonie went to Sweet Zone
2019-11-11 • Updated
- SELL 1.3650
- SL 1.3705
- TP1 1.3525, TP2 1.3370
On the daily chart, USD/CAD reached 127.2% target of the inverted "butterfly" pattern. At the present time, the quotes are in the Sweet Zone of the "Wolfe Waves" pattern. A movement to the downside is possible from this area.
On H1 USD/CAD keeps forming reversal 1-2-3 pattern. Together with the "3 Indians" pattern, it forms the powerful bearish combo. The lower border of the uptrend may be simultaneously breached. This is a selling signal, which points at 161.8% target of the "Crab" pattern.
Recently, the Bank of Canada hiked the interest rates by 50 basis points. It is now 1.5%, and it’s only the beginning.
Last week, EURUSD broke below a significant support level, the gas price retested its October high, and the oil prices managed to correct lower on the bearish signs of more oil supplies coming into the market.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD
The US dollar index has all chances of reaching the 2000s high of 120.00.
The Consumer Price Index announcement by Statistics Canada is set for release in a few hours will reveal the state of inflation in the Canadian economy