This report was created by OXShare

In the European session, the USD/CAD pair continued to rise, moving away from the round-level resistance of 1.3800. There is anticipation that the Loonie asset will regain the important resistance level of 1.3800, as the US Dollar has shown a strong recovery due to the current cautious market sentiment before Federal Reserve Chair Jerome Powell’s speech.

The US Dollar Index the DXY has risen above 105.80 due to the belief of several Federal Reserve officials that another interest rate increase is necessary to bring consumer inflation back to 2% quickly. The 10-year US Treasury yields have also increased to approximately 4.60% as there is a sense of caution surrounding this situation. Jerome Powell “Possible points of conversation could involve the necessity of raising interest rates to a higher level.”

Oil prices have reached a new low in four months due to increasing concerns about global demand. The decrease in oil prices suggests that investors are becoming less anxious about issues in the Middle East. It should be mentioned that Canada is the top oil exporter to the United States, and as a result, lower oil prices have an impact on the value of the Canadian Dollar.

The USD/CAD experienced a significant rebound, reaching close to the 23.6% mark. Fibonacci retracement level (drawn from 9 September at 1.3380 to the high point on 1 November at 1.3900) can be found at 1.3775. Loonie The asset has reached a point where it is now steady and above the 50-period Exponential Moving Average (EMA), implying that the short-term direction has shifted to become more positive.

The Relative Strength Index (RSI) (14) has moved into the bullish zone of 60.00–80.00, suggesting that a positive trend has begun.

Moving forward, if there is a clear and definite increase in value surpassing the highest point recorded on October 27th at 1.3880, it will reveal the resistance level at 1.3900, followed by the peak reached on October 13th, 2022 at 1.3978.

If a different situation were to occur, if the asset falls below the low point from October 24, which is around 1.3660, it would cause the asset to drop further to the support level of 1.3600. If the drop continues, it could then lead the asset to reach the low point from October 7 at 1.3570.

[

Forex

](https://medium.com/tag/forex?source=post_page-----e5e434659440---------------forex-----------------)

[

News

](https://medium.com/tag/news?source=post_page-----e5e434659440---------------news-----------------)

[

Analytics

](https://medium.com/tag/analytics?source=post_page-----e5e434659440---------------analytics-----------------)

[

](https://oxshare.medium.com/?source=post_page-----e5e434659440--------------------------------)