Usdcad:1.2850 support is broken down

Fundamental analysis:

The US dollar index fell 0.69% on Wednesday, the 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 the comments of Federal Reserve Chairman Powell made the market expect the path of interest rate hike to slow down. The Federal Reserve raised interest rates by 75 basis points for the second time in a row to try to control inflation; It pointed out that although the labor market is still strong, other economic indicators have been weak.

USD / Canadian dollar USDCAD daily chart:

Technical analysis:

According to the daily chart, the exchange rate is significantly back tested and pierced into the long and short turning area. MACD crosses the 0 axis below and the volume can be slightly increased. RSI continues to weaken, and it is expected that the short-term exchange rate probability will further decline.

Long short turning point: 1.2850

Resistance level: 1.3030 1.3200

Support position: 1.2650 1.2450

Trading strategy: bearish below 1.2850, with target prices of 1.2650 and 1.2450

Alternative strategy: bullish above 1.2850, with target prices of 1.3030 and 1.3200