USD/CAD weekly special report based on 1 Lot Calculation:
- EVENT (WEDNESDAY, MAY 1 AT 19:00 GMT+1): US FEDERAL RESERVE INTEREST RATE DECISION. The US Fed is expected to keep interest rates unchanged at 5.50% on Wednesday, but they are still expected to cut rates at least twice by 0.25% points by the end of 2024. If confirmed by the Fed, the US dollar could come under negative pressure.
- CANADIAN DOLLAR EXPECTED TO SEE UPWARD PRESSURE DUE TO RISING OIL PRICES. Canada is one of the largest oil producer (around 5 million barrels a day) and exporter of oil in the world. Therefore, their economy depends on oil prices to a great extent. Considering the fact that recent Middle- East tensions have boosted oil prices, Canada’s revenue from selling oil have also gone up. This in turn is boosting their economy, and therefore their domestic currency, the Canadian dollar (CAD).
- TECHNICAL ANALYSIS: THE USD/CAD IS TRADING NEAR THE TOP OF ITS SIDEWAYS CHANNEL (BETWEEN 1.3200 AND 1.3850). The chanel has been in place since mid- 2022, whereby the USD/CAD has tested the upper boundary of 1.38500 four times. On the downside, the USD/CAD has tested the lower boundery three times over the same period. The USD/CAD could be expected to soon undergo a downward correction after recently testing its upper boundary of 1.38500.
GRAPH: Weekly (July 2022 – April 2024)
USD/CAD, April 25, 2024
Current Price: 1.3680
USD/CAD |
Weekly |
Trend direction |
|
1.3970 |
|
1.3900 |
|
1.3850 |
|
1.3500 |
|
1.3350 |
|
1.3200 |
Example of calculation based on weekly trend direction for 1 Lot1
USD/CAD |
||||||
Pivot Points |
||||||
Profit or loss in $ |
-2,121 |
-1,609 |
-1,243 |
1,316 |
2,413 |
3,510 |
Profit or loss in €2 |
-1,979 |
-1,501 |
-1,160 |
1,228 |
2,252 |
3,275 |
Profit or loss in £2 |
-1,695 |
-1,286 |
-994 |
1,052 |
1,929 |
2,806 |
Profit or loss in C$2 |
-2,900 |
-2,200 |
-1,700 |
1,800 |
3,300 |
4,800 |
1. 1.00 lot is equivalent of 100,000 units
2. Calculations for exchange rate used as of 11:15 (GMT+1) 25/04/2024
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