Hello Traders,
USD/CAD has tested the trendline support that was formed back in Nov 2022. The trendline has very strong support and this poses as a good buy opportunity. The risk/reward ratio is a good 5:1 if you place your entry at 1.3320. BoC has raised interest rate which does signal a stronger dollar, however oil prices may be dropping which counteracts the CAD strength. Canadian unemployment rate is released tomorrow which can further strengthen CAD or weaken if the data is weak. Be cautious and wait for confirmation before entry.
USD/CAD has tested the trendline support that was formed back in Nov 2022. The trendline has very strong support and this poses as a good buy opportunity. The risk/reward ratio is a good 5:1 if you place your entry at 1.3320. BoC has raised interest rate which does signal a stronger dollar, however oil prices may be dropping which counteracts the CAD strength. Canadian unemployment rate is released tomorrow which can further strengthen CAD or weaken if the data is weak. Be cautious and wait for confirmation before entry.