Technical Outlook

-USDCAD is trading in range between the support $1.33253 and the resistance $1.36545 while the MA is forming a death cross.

-EURUSD is witnessing bearish pressure while the price is trading below the 50MA and above the 200MA.

CANADA (CAD): BANK OF CANADA INTEREST RATE DECISION

Bank of Canada (BOC) governing council members come to a consensus on where to set the rate.Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.  Canada’s interest rate is set at 4.50%.

The report is due Wednesday, 7 June 14:00 GMT

USDCAD Technical Analysis:

USDCAD chart shows the market is in range. The market trades between the support of $1.33253 and the resistance of $1.36545. The 50MA is crossing below the 200MA showing the market may move down by some pips. However, this is a confluence as the market is consolidated, and the sellers’ pressure exceeds the buyers’.

The RSI line is at 42.76 showing neutral overbought and oversold condition. The price tried breaking the support and the resistance and failed. Traders now may have to wait for the break of either the support or the resistance for trend confirmation. However, if you are an advanced trader, you may look into the lower time frame for short-term trades.

Pivot Points: USDCAD

USA (USD): JOBLESS CLAIMS

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week. Last week’s jobless claims rose to 232K, lower than the forecast of 235K.

The report is due Thursday, 8 June 12:30 GMT

EURUSD Technical Analysis:

EURUSD has been in a consolidation state for a long time, with the price not trading in any specific trend. The chart shows the 50MA crossing above the 200MA forming a golden cross on 30th Dec 2022. The price increased after the golden cross formation, gaining a few pips but halting at $1.10335.

The following few trading weeks saw some bearish pressure pushing the prices down by 4.68% and forming the support. The market here tried to break the support but failed; the buyers took control and formed a new high, where the market created a resistance zone of $1.10780.

An RSI bearish divergence was formed, signaling the bearish pressure is due. Currently, the RSI is at 37.49, showing an overbought condition. Also, the market is below the 50 and above the 200MA, showing range condition. Traders may take SELL depending on the current market condition but also consider other factors like the support being near the current market price.

Pivot Points: EURUSD

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