USDCAD Strategy - US Economy Stabilizes Further, USDCAD Continues to Rise

Fundamental Analysis:

Yesterday's data showed a decline in US manufacturing, but the service sector saw significant growth, continuing previous industry trends and highlighting that the service sector remains a key support for the US economy. The composite PMI also moved upward, keeping the market optimistic about the US economy and strengthening the dollar, which adds upward momentum to USDCAD. Additionally, last week's data showed inflation heating up, coupled with stable economic and employment data. While this won't affect the Fed's rate cuts this week, it changes market expectations regarding future monetary policy easing, leading to continued dollar strength, potentially impacting non-US currencies.

Technical Analysis:

On the 1-hour chart, USDCAD is moving upward along the moving average line and has consistently reached new highs, with the moving averages in a bullish alignment, indicating a positive outlook. However, the KD indicator has formed a death cross in the overbought zone, suggesting a potential short-term pullback. It is advised not to short against the trend during pullbacks. Instead, wait for a retracement to the 1.4240 support level to enter light long positions, with a target of 1.4350 and a stop loss at 1.4190.

Trading Recommendation:

Wait for a retracement to the 1.4240 support level to enter light long positions.

Target: 1.4350 Stop Loss: 1.4190

Support: 1.4240 Resistance: 1.4350

The above content is for reference only and does not represent the platform's stance. Stick to your own strategy and manage risks appropriately.