USD / CAD overview from April 26, 2021
On Monday, USD / CAD is declining with the renewal of local lows from March 18 in the area of 1.2450.
Despite strong US macroeconomic statistics, the US dollar still remains under pressure.
The pressure on the USD has increased since Joe Biden’s speech last Friday. The President of the United States is in favor of increasing the tax burden on wealthy Americans. This is one of the components of the program to upgrade the infrastructure in the country. The increase in the tax rate will add to the budget about 2 trillion. dollars. After Joe Biden’s speech, US stock indices went down sharply.
Technical Analysis USD / CAD
On the daily basis, the Bollinger Bands indicator is showing a steady decline.
The MACD indicator is declining in the negative area and has formed a fairly stable sell signal.
Stochastic has broken the 20% border from above
After the breakdown below 1.2439, we continue to open short positions with a take profit of 1.2353. Setting a stop loss at 1.2480.
In case of a rebound from 1.2439 followed by a breakdown and consolidation above 1.2471, we will open purchases in the direction of 1.2554. Set the stop loss at 1.2425.