Investors were not surprised by the Fed rate hike, which saw USD/CAD push lower yesterday. Recession concerns after the rate hike are pushing the dollar higher today. USD/CAD bulls could attempt a break of 1.3000 in the charts. After the 75-bps rate hike widely predicted by the market, the USD/CAD price went up as investors worried about the possibility of a tighter monetary policy pushing the economy into a recession. -Are you interested in learning about forex tips? Click here for details- But by late afternoon New York time, investors’ growth concerns were reduced, and instead, they believed that the economy would be better off in the long run if the Fed controlled inflation. The market’s relief that the Fed had delivered what it expected extended to Treasuries. At a news conference afterward, Fed Chair Jerome Powell said that a 50- or 75-basis-point increase at its next meeting in July seemed most likely and that the economy was strong enough to handle a tighter policy. “Whether or not we can escape this without a recession is coming into question,” said Ellen Hazen, chief market strategist at F.L.Putnam Investment Management in Massachusetts. “The runway for them to have a soft landing just got shorter and narrower, meaning that they are anticipating higher inflation, higher unemployment, and lower GDP (gross domestic product),” Hazen said. The US dollar is extending gains on Thursday and is pushing USD/CAD higher. USD/CAD key events today Later in the day, investors expect a drop in the US’s initial jobless claims and building permits. A 0.1% drop in Canadian wholesale sales is also expected later today. Get FREE Forex Signals Now! USD/CAD price technical analysis: Bullish momentum staying intact The 4-hour chart shows a strong bullish trend that pushed the price above 1.2900, then pulled back sharply. The price is attempting to get to 1.30000 after the retracement and could get there if bulls remain strong. The RSI is well above the 50 level, favoring bullish momentum. -Are you interested in learning about the forex basics? Click here for details- The sharp pullback in the trend is a sign that bears are waiting for bullish weakness so they can get in and turn the market. If the price can get to a higher high at or above 1.3000, we can see if bulls are strong enough to keep pushing beyond that level. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next GBP/USD Price Marching Towards 1.2200 Before the BOE Meeting Olimpiu Tuns 8 months Investors were not surprised by the Fed rate hike, which saw USD/CAD push lower yesterday. Recession concerns after the rate hike are pushing the dollar higher today. USD/CAD bulls could attempt a break of 1.3000 in the charts. After the 75-bps rate hike widely predicted by the market, the USD/CAD price went up as investors worried about the possibility of a tighter monetary policy pushing the economy into a recession. -Are you interested in learning about forex tips? Click here for details- But by late afternoon New York time, investors' growth concerns were reduced, and instead, they believed that the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.