USDCAD Longs Expected To Remain Profitable Despite Softer USD, FOMC Decision
Yesterday, the Federal Reserve Bank announced that the US benchmark rate would remain unchanged, after a hike in December 2015. The central bank did not indicate a specific timing for another increase and the markets are pricing that a rate hike is not likely this summer. After the Fed Chair’s press conference, the greenback declined against a basket of its peers, and the dollar index DXY tumbled to a low of 94.26. On the hourly chart, USDCAD is finding its way up from the support of 1.26585, which was formed last Friday. RSI (14) is moving upwards towards the threshold of 70, indicating that the bull is overwhelming. In near future, the Loonie is anticipated to weaken versus the USD continuously.
Buy stop at 1.29709, Stop loss at 1.29236, Take profit at 1.30252.