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Pullbacks Present Opportunities as Uptrend Continues
Central Bank
Forex
Summary:
With the "Trump trade" propelling the U.S. dollar to continue strengthening, the USDCAD has officially broken through the 1.40 threshold, further opening up upward potential.
Buy
TradingUSDCAD
EXP
1.40174
Entry Price
1.44100
TP
1.38100
SL
1.39642 -0.00100 -0.07%
0
Point
Flat
1.38100
SL
CLOSING
1.40174
Entry Price
1.44100
TP
Fundamentals
With the conclusion of the U.S. elections, Trump has successfully won, and the "Trump trade" has propelled the U.S. dollar to continue strengthening. The U.S. Dollar Index (USDX) has reached a peak of over 107.00, and the USDCAD has also risen significantly, successfully breaking through the 1.40 threshold.
However, due to the rapid increase in the USDX in the short term, a pullback has begun, and the USDCAD has also retraced. Since the uptrend of the U.S. dollar has not yet ended, we believe that after Trump takes office in January next year, the policies he is likely to implement will continue to bolster the strength of the U.S. dollar, providing support for the ongoing rise of the USDCAD.
It is worth noting that later today, Canada will release the October CPI. If inflation in Canada continues to decline, this may lead to further weakening of the Canadian dollar. Conversely, if inflation rises, it would indicate resilience in inflationary pressures within the Canadian economy. This could provide support for the exchange rate of the Canadian dollar, as the Bank of Canada's (BOC) dovish stance may be alleviated.
Technical Analysis
In the 1W timeframe, the USDCAD has strongly broken through the previous fluctuation range and simultaneously surpassed the 1.40 threshold, indicating robust bullish momentum and a strong continuation of the uptrend, with the potential to test new highs.
In the 4H timeframe, after breaking through the 1.40 threshold, the USDCAD has continued to rise; however, following a significant short-term increase, it has temporarily retraced. As it retraced to the 1.40 support level, it has consecutively closed with bullish candles, suggesting that the pullback may be nearing its end and that the uptrend may continue.
Currently, we can observe whether the USDCAD will stabilize at the 1.40 support level. If it holds, the USDCAD will likely continue its uptrend and push towards new highs; if it declines, we should keep an eye on the 1.3960 support level. It is recommended to go long at the lows.
Trading Recommendations
Trading Direction: Sell
Entry Price: 1.4020
Target Price: 1.4410
Stop Loss: 1.3810
Deadline: December 3, 2024 15:00:00
Support: 1.4000, 1.3976, 1.3897
Resistance: 1.4105, 1.4264, 1.4667
Risk Warnings and Investment Disclaimers
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