US-Canada Strategy - Powell Takes a Hawkish Stance, USD Maintains Strong Momentum

Fundamental Analysis:

Market expectations that Trump's tariff hike will push up inflation, along with strong performance in US stocks driving capital back to the US, are supporting the continued strength of the US dollar. If tonight's US CPI data does not show significant cooling, the market may continue betting on the Fed slowing its rate-cut pace, thereby providing upward momentum for the US dollar index. Consequently, gold is viewed with a bearish outlook.

Technical Analysis:

The 1-hour chart shows higher highs and higher lows, indicating a bullish trend. The latest upward wave's 61.8% Fibonacci retracement theoretically provides support, making it a potential entry point for a long position. If the previous low is breached, the trend may reverse, and long positions should be stopped out. Profit-taking is recommended at the prior high as the upward trend has previously halted at that level.

Trading Recommendation:

Consider going long on USD/CAD below 1.40232, with a stop loss at 1.39936 and a target at 1.40710. (Please calculate the spread accordingly.)

Support Level: 1.39936 Resistance Level: 1.40710

This content is for reference only and does not represent the platform's stance. Stick to your strategy and implement appropriate risk management.