Focus on USDCAD today – 10th April 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDCAD for 10^th April 2024. 

Key Takeaways 

• Oil Price Stability Bolsters CAD: The recent rebound in oil prices has been a supportive factor for the Canadian dollar, which is closely linked to oil. The rise in oil prices not only eases Canada’s external inflationary pressure but also contributes to domestic price stability. 
• Bank of Canada Rate Decision: The Bank of Canada will announce its latest interest rate decision tonight. The weak employment data in Canada previously will likely keep the Bank of Canada cautious in its tone. Against the backdrop of high crude oil prices, Canada may not easily change interest rates, with the market expecting the Bank of Canada to cut rates by June at the latest. 

Technical Analysis 

Daily Chart Insights 

• Stochastic oscillator: The indicator has been out of the overbought area for nearly 10 trading days, continuously oscillating and adjusting above the 50 midpoint line. Under the strong US dollar background, the indicator still shows no signs of rising, implying that the bullish strength of the CAD should not be underestimated. 
• Trading Range: Amid the trend of depreciation of non-US currencies, the CAD has withstood pressure and remained within the trading range. The 1.3600 level has capped further upward movement in the exchange rate, while the red 33-day moving average has supported the exchange rate from falling. 

4-hour Chart Analysis 

• Stochastic oscillator: The indicator has issued a bullish signal before reaching the oversold area, indicating a short-term positive outlook on the exchange rate. However, without sufficient adjustment, it is not advisable to take long positions lightly. 
• False Breakout: After a short-term breakout of the resistance level last week, the exchange rate fell below the resistance this week and is currently facing resistance from the 33-period and 65-period moving averages. If the exchange rate breaks below the moving average support again, it will likely confirm that last week’s breakout was a false one, and the CAD may be in for an appreciation trend. 

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.3604, 
• Bullish Scenario: Bullish sentiment prevails above 1.3604, first target 1.3622, second target 1.3633; 
• Bearish Outlook: In a bearish scenario below 1.3604, first target 1.3549, second target 1.3538. 

Conclusion 

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey. 

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets. 

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Stay tuned for more updates and analyses from our team of experts at Ultima Markets. 

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Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.