USD/CAD is testing a significant resistance zone!
Will the pair be the subsequent to document a notable technical breakout this week?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out GBP/CAD’s descending channel resistance forward of BOC’s coverage announcement. You should definitely take a look at if it’s nonetheless a sound play!
And now for the headlines that rocked the markets within the final buying and selling classes:
Recent Market Headlines & Financial Information:
U.S. inflation accelerates from 8.6% to 9.1% in June, the best since November 1981
Wall Road tumbles, EUR/USD dips under parity after a sizzling U.S. inflation report
BOC surprises markets with 100bps rate of interest hike (vs. 75bps anticipated) to “keep away from the necessity for even larger rates of interest down the highway”
U.S. Beige Guide stories “rising” indicators of slowdown and “elevated threat” of recession
U.S. crude shares unexpectedly rise: EIA
Embattled crypto lender Celsius information for chapter safety
Italy’s authorities faces collapse as 5-Star shuns confidence vote
AU MI 12-month inflation expectations decrease from 6.7% to six.3% in June
Australia’s unemployment price falls from 3.9% to three.5% – the bottom since August 1974
Fed’s Bostic on a 100bps rate of interest hike: “the whole lot is in play”
USD/JPY is buying and selling above 138.00 for the primary time since September 1998
European shares fall, Italian shares slide on political worries
EU’s financial forecasts due right now
U.S. PPI stories at 12:30 pm GMT
U.S. preliminary jobless claims at 12:30 pm GMT
BusinessNZ manufacturing index at 10:30 pm GMT
China’s information dump (GDP, retail gross sales, mounted asset funding, industrial manufacturing, unemployment price at 2:00 am GMT (Jul 15)
Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: GBP/CAD
USD/CAD 4-hour Foreign exchange Chart
Resistance alert! USD/CAD is knocking on the 1.3060 zone that has held as resistance no less than thrice since mid-Might.
What makes the setup extra fascinating right now is that the final 4-hour candlestick appears to be like verrrry bullish and prepared and in a position to tackle the resistance degree.
Recall that Financial institution of Canada (BOC) simply shocked markets with a 100bps rate of interest hike as a substitute of the 75bps hike that merchants had priced in.
Sadly for CAD bulls, foreign exchange playas had their eyes on the Fed. Particularly, they’re re-pricing the chances of the Fed elevating its charges by 100bps later this month after Uncle Sam’s CPI clocked in at a whopping 9.1% in June.
Are we an upside breakout within the making? The U.S. might be printing its PPI numbers later right now and, whereas it received’t have as a lot affect because the CPI launch, it might additionally feed the markets’ inflation issues and encourage extra 100bps price hike speculations.
If the greenback domination extends to right now’s U.S. session buying and selling, then USD/CAD can lastly break above 1.3060 and retest earlier areas of curiosity like 1.3100 or 1.3340.
In fact, merchants may also take a chill capsule and perhaps even take income forward of the weekend.
I’ll be China’s information dump scheduled in the course of the Asian session for clues on the tempo of worldwide financial development and general risk-taking.
