USDCAD: Bears are gaining momentum

Fundamental analysis:

The U.S. dollar index fell 0.69% on Wednesday, its worst performance in a week, to close at 106.48, after the Federal Reserve raised interest rates by 75 basis points as widely expected, but comments from Fed Chairman Jerome Powell raised expectations for a slower rate hike path. The Federal Reserve raised interest rates by 75 basis points for the second time in a row in an attempt to rein in inflation, noting that while the labor market remains strong, other economic indicators have softened.

USD/CAD USDCAD daily chart:

A brief technical analysis:

From the daily chart: the exchange rate breaks through the long-short turning area and continues to decline. MACD is below the 0 axis and the volume can be slightly increased. The RSI continues to weaken. It is expected that the short-term exchange rate will likely fall further.

Long-short turning point: 1.2850

Resistance: 1.3030 1.3200

Support level: 1.2650 1.2450

Trading strategy: bearish below 1.2850, target price at 1.2650, 1.2450

Alternative strategy: bullish above 1.2850, target price at 1.3030, 1.3200