USD/CAD weekly special report based On 1.00 Lot Calculation:
·NEWS (Silicon Valley Bank and Signature Bank, bankrupt). Silicon Valley Bank, 20th largest bank in the US, went bankrupt followed by Signature Bank. This event created risk contagion across the financial market that the 2008 global economic crisis could repeat. Consequently, the market expects that the Federal Reserve will stop with further interest rate hikes and possibly even reduce its interest rate.
·EVENT (Wednesday, March 22 at 19:00 GMT): Federal reserve interest rate decision. Current Federal Reserve interest rate stands at 4,75%. According to Chicago Mercantile Exchange, Fed Watch tool, probability that Federal Reserve will pause its interest rate hikes, increased after bankrupt of Silicon Valley Bank and Signature Bank
·TECHNICAL ANALYSIS: Relative Strength indicator on daily graph suggest that USDCAD is on overbought level, which could potentially imply that downward price correction is possible.
USDCAD, March 14, 2023
Current Price: 1.3730
|
USD/CAD |
Weekly |
|
Trend direction |
|
|
1.4200 |
|
|
1.4050 |
|
|
1.3983 |
|
|
1.3460 |
|
|
1.3385 |
|
|
1.3250 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $ |
-3,427 |
-2,333 |
-1,845 |
1,969 |
2,516 |
3,500 |
|
Profit or loss in €² |
-3,201 |
-2,179 |
-1,723 |
1,839 |
2,349 |
3,269 |
|
Profit or loss in £² |
-2,816 |
-1,917 |
-1,516 |
1,617 |
2,067 |
2,875 |
|
Profit or loss in C$² |
-4,700 |
-3,200 |
-2,530 |
2,700 |
3,450 |
4,800 |
1. 1.00 lot is equivalent of 100.000 units
2. Calculations for exchange rate used as of 8:18 (GMT) 14/3/2023
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
- Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more details