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Selling resumed after the Fed

USD / CAD overview from April 29, 2021


USD / CAD remains in a downtrend and is trading in the area of ​​1.2300-1.2310.

At the Fed meeting, it was decided to leave the interest rate in the range of 0.00% -0.25% and not reduce the volume of asset purchases until the appearance of confident signals of economic recovery. Jerome Powell noted that the normalization of monetary policy will begin only after the achievement of targets for employment and inflation.

The Canadian dollar received support after information that a shipment of Janssen vaccine from Johnson & Johnson has arrived in the country. The drug was supposed to arrive back in March, but due to problems with logistics, it arrived only at the end of April. From economic statistics, it should be noted that the core retail sales index rose 4.8% in April.

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According to the daily chart, USD / CAD is within the global descending channel. Indicators confirm the downward direction of the pair. The Alligator keeps the fan of averages open down correctly, the awesome oscillator indicator is actively decreasing in a negative range.

usdcad_daily
usdcad_daily

If the downward dynamics continues, we will wait for the pair to consolidate below the support 1.2287. From here we sell in the direction of 1.2100. Set the protective stop at 1.2350.

A breakdown and consolidation above the key resistance 1.2400 will indicate a transition to growth. The nearest target of the “bulls” is 1.2600. The stop loss is placed at 1.2300.

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