Focus on USDCAD today – 30th January 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDCAD for 30th January 2024. 

Key Takeaways 

• U.S. economy remains resilient: Federal Reserve (Fed) will announce its latest interest rate decision this week. Being the first session of the year, investors are anxiously waiting to see if the central bank will provide further signals on interest rate setting. With the next session scheduled in March and highly speculated to initiate its first rate cut, the Fed may release its forward guidance in advance during this week.  
• Short-term decline in oil prices: International crude oil prices opened higher and moved lower subsequently after touching two months’ high, ending a three-day winning streak, as concerns on Asian demand push traders to reassess the risk premium on tensions in the Middle East.  

Technical Analysis 

Daily Chart Insights

• Stochastic Oscillator: The indicator illustrates bearish signal, suggesting that the current short forces have the upper hand. It is worth noting that the current indicator fast line has fallen below the 50-midline, while the slow line is still above the midline, signalling a halt in downside bias. 
• Moving Average: The blue 17-day moving average provides short-term support for the exchange rate to rise. Yesterday, the pair showed bearish engulfment and closed below the moving average. If the exchange rate fails to rebound above the moving average today, the pair may continue its short-term bias. 

1-hour Chart Analysis

• Stochastic Oscillator: The indicator has entered the oversold region and is currently undergoing adjustments. Be wary of subsequent bullish signals ahead. 
• Downward Flag Pattern: The pair has oscillated for half a month since its previous high in early January, forming a downward flag pattern. It is currently testing near the lower boundaries of the pattern. If the pair accelerates its downside bias, the pair may enter long-term bearish push. Otherwise, its bearish bias will come to an end temporarily. 

Pivot Indicator

• According to the Trading Central indicator in Ultima Markets App, the central price of the day is established at 1.3445; 
• Bullish Scenario: Bullish sentiment prevails above 1.3445, first target 1.3465, second target 1.3480; 
• Bearish Outlook: In a bearish scenario below 1.3445, first target 1.3380, second target 1.3360. 

Conclusion