Forex Update: USDCAD setting up a new push higher?
This week so far has definitely been about the USD. Price has seen solid gains so far, with the index adding 0.98% and hitting a new weekly high of 99.65.
Inflation worries in the US, followed by aggressive comments from the Fed regarding rate increases to combat soaring inflation, have been the key driver. US inflation hit40-yearadjustment to try and get it under control. Inflation is now a widespread issue, with Europe, Britain and Australia feeling the pinch.
Today we are focusing on the USDCAD as a higher USD, and weaker oil prices continue to support buying. The price broke out of its mini range yesterday, and buyers have followed up on the break with new weekly highs today. Today’s move also confirms the breakout. Price started its move from a solid-looking foundation after forming a range off a well-established support area.
Looking forward, if this is a true move higher, we would like to see if buyers can get the price back up to 1.2626. This area is a previous low and could develop into resistance. What we don’t want to see is a new move by sellers pushing price back into the range or back down to support. This could become a failure break and set up new downward pressure.
USDCAD D1 Chart 
* The information provided on this page are the opinions of the author and do not necessarily reflect the opinions of Eightcap and are not endorsed by Eightcap.
Any person acting on the information presented on this page does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to any specific investment objectives, financial situation and needs of any specific person who may receive it.
Margin trading involves a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary.