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Forex News: USDCAD, could a new push lower be on the cards?

May 16, 2022
by Joseph Jeffriess, Market Analyst

Looking at the USDCAD on the daily chart traders, could we see a new move lower if sellers can reverse today’s rally and break last Friday’s low?

We are looking for that low break as it will back up a break of the fast trend and confirm the current bearish CCI. Risk markets look to be back in vogue on the short term, but this could be a short term move as overall inflation has not gone anywhere. There could be a case to put forward that rate rises could start to be factored in, and that expectation could outweigh the actual, but from recent history, the USD has been performing since 2021, and yes, we could see an extended retracement in the market, but fundamentals would need to change too dramatically to change the overall trend.

Oil is another factor for this pair, and for now, buyers are trimming earlier losses. So we will continue to watch this pair’s price action, and if we do see a new break below last Friday’s low, we will look to see if it can turn into a new leg lower.

USDCAD D1 Chart

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