Today’s free forex signals service is a buy on the USD/CAD as we expect the market to observe the Dollar’s downside in the wake of Fed’s hawkish stance on tapering.
Early Friday morning, the USD/CAD pair was down to a two-week low of around 1.2650. Meanwhile, the loonie pair paused for three days to not forget the biggest drop since August.
Yesterday, the USDCAD slipped below 1.2720 and began a downward trend as we anticipate further declines to 1.2600.
The current bearish sentiment is therefore suggested for today. Breaking 1.2720 and 1.2775 will be necessary to stop the current negative pressures.
The USD/CAD fell further amid better market sentiment and received a double boost from the surge in oil prices before hitting two-month highs again. After the Fed corrected to re-launch its monthly high, the positive sentiment had the biggest impact on the US Dollar Index (DXY) since August 27.
The key to tracing the origins is waning fears that Chinese real estate giant Evergrande poses a major threat to the economy. As a result, government incentives were provided to help encourage the company to pay off the proposed coupon and receive restructuring plans.
In addition to pressure on the DXY, more favorable sentiment also boosted US equities. At the same time, 10-year US Treasury yields rose the most in 10 weeks, ultimately justifying the Fed’s hints of tightening and rate hikes.
Earlier on Thursday, the US Treasury bond yields fell as higher jobless claims than expected led to a fall in the dollar. As for monetary policy, the Fed left it unchanged, saying that if the recovery in the US continues, it may remove some adjustments. IHS Market’s composite PMI also showed weaker performance than expected in manufacturing and services.
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Free forex signals – Sell USD/CAD at 1.2628
Instrument: USD/CAD
Order Type: SELL STOP
Entry price: 1.2628
Stop Loss: 1.2734
TP1: 1.2491
Our Risk Setting: 1%
Risk / Reward Ratio: 1:1.3
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Saqib Iqbal
