USDCAD down once more and beneath the low of the "Crimson Field"

The USDCAD has skilled vital volatility over the previous 5 buying and selling days, largely pushed by uncertainty surrounding tariffs. Final week, the value broke larger, shifting outdoors the “pink field” vary that had confined buying and selling since December 17. This breakout was exacerbated on Monday following the announcement of a possible 25% tariff, which was later delayed for 30 days by Monday’s shut.

The delayed tariff information led to a pullback within the value yesterday and a extra modest decline at the moment. At present’s transfer has pushed the value beneath the decrease boundary of the “pink field” vary, outlined between 1.42905 and 1.43043, which now serves as key resistance. Staying beneath this space retains sellers in management and opens the door to additional draw back. Conversely, a transfer again above this vary would sign a failed breakdown, disappointing bearish merchants.

Wanting again to January 20 (Inauguration Day), the same unstable transfer noticed the value dip beneath the decrease swing space of the “pink field” solely to search out assist and rebound larger. Merchants at the moment are on excessive alert, with sellers sustaining an edge. On the draw back, watch the 1.4260–1.4270 zone intently—a transfer beneath this vary would reinforce the bearish bias.

This text was written by Emma Wang at www.ubaidahsan.com.



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