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Aayush Jindal

Key Highlights

  • USD/CAD gained pace and traded above the 1.3450 resistance.
  • A key bullish trend line is forming with support near 1.3340 on the 4-hours chart.
  • EUR/USD and GBP/USD extended losses below key support zones.
  • The Fed hiked interest rates from 2.5% to 3.25%.

USD/CAD Technical Analysis

The US Dollar started a major increase above the 1.3200 zone against the Canadian Dollar. USD/CAD broke the 1.3400 resistance to move further into a positive zone.

Looking at the 4-hours chart, the pair settled above the 1.3300 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). The upward move was such that the pair even cleared the 1.3450 resistance zone.

It tested the 1.3525 level and remains well supported for more gains. On the upside, an initial resistance sits near the 1.3550 zone.

The first major resistance is near the 1.3600. A clear move above the 1.3600 level could open the doors for a test of 1.3700. Any more gains might send the pair towards the 1.3880 level.

On the downside, an initial support is near the 1.3425 level. There is also a key bullish trend line forming with support near 1.3340 on the same chart.

A downside break below the trend line support might send the pair towards the 1.3315 level. The next major support is near the 1.3280 level, below which the pair could even test the 1.3220 level in the coming days.

Looking at EUR/USD, there was a fresh decline below the 0.9900 support zone. Besides, GBP/USD traded to a new multi-year low and broke the 1.1340 support.

Economic Releases

  • BoE Interest Rate Decision - Forecast 2.25%, versus 1.75% previous.
  • US Initial Jobless Claims - Forecast 210K, versus 213K previous.