USD/CAD Enters its 5th Profitable Week

USD/CAD

The pair runs the fifth straight profitable week, after yesterday boost from Mr Powell's re-nomination, while on a monthly level, November is on track to become the best of the year.

On Monday, US President Biden picked Mr. Powell for another term at the helm of the Fed, over runner –up Ms. Brainard. This bodes well with market expectations for faster policy normalization, as the Fed Chair is perceived as the less dovish of the two.

This sent USD/CAD to fresh November highs beyond 1.2676 as we expected form our last analysis. It also led to a close above the Ichimoku Cloud on the Daily chart, while FXCM's contrarian Speculative Sentiment index (SSI) has been declining and a move to negative territory would be supportive of more gains.


Past Performance: Past Performance is not an indicator of future results.

From here, the pair is better positioned to reclaim the descending trend-line from this year's highs (currently at around 1.2780-90), although it may be early to talk for further advance past mid-1.2800.

On the other hand, the Relative Strength Index (RSI) points to overbought conditions, which could spark selling pressure towards mid-1.2600, but a catalyst would be required for deeper pullback in the area defined by the 200Days and 200H4 EMAs (1.2580-20).


Past Performance: Past Performance is not an indicator of future results.

Apart from today's data, Wednesday features a high number of economic releases that can affect the pair's trajectory and also cause volatility, ahead of the US Thanksgiving holiday.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

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