USD/CAD is overbought but a stronger move lower is needed to signal increased downside risks – Scotiabank

Market news

24 August 2023

USD/CAD is overbought but a stronger move lower is needed to signal increased downside risks – Scotiabank

USD/CAD saw a strong rejection of the 1.36 area on Wednesday. Economists at Scotiabank analyze the pair’s outlook.

Underlying dynamics remain USD-bullish on the trend oscillators

Spot’s reaction to Wedneday’s test of the 1.36 area (effectively a retest of trend support-turned-resistance) looks USD-negative on the face of it, with the intraday chart reflecting a big, bearish ‘shooting star’ candle on the six-hour chart. But the USD is grinding a little higher again so far today and underlying dynamics remain USD-bullish on the trend oscillators.

The USD is overbought but a stronger move lower is needed to signal increased downside risks at this point.

Resistance is 1.3555/1.3565 and 1.3600/1.3610. Support is 1.3495/1.3505.

USD may struggle to gain more ground without some hawkish messaging – Scotiabank

Singapore: Inflation receded further in July – UOB

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer

Open Demo Account & Personal Page

Personal area

support@teletradepartners.com

Risk Warning: Trading in the financial markets (including trading on margin) provides a wide range of opportunities and enables investors ready to take risks to make high profits, but it carries a potentially high level of risk of loss. Therefore, prior to trading you should take into careful consideration whether such operations are suitable for you in terms of your level of knowledge and financial situation.