Overnight brings a somewhat calming down to the currency market, but the USD remains strong. The dollar index is hovering near three-month highs on the wave of strengthening from Friday and yesterday with the help of growing yields on government bonds - 10-year-olds attack 3%. The last hours bring a bit of calm and attempt to correct the recovery, but the EUR, GBP, and JPY profits do not exceed 0.2%. The weakest is NZD, where the reduction of long positions continues and NZD / USD fell to 0.7110.The stock market in Asia uses peace to increase.
On Tuesday 24th of April, the event calendar is light in important data releases, but the global investors should keep an eye on German Ifo Business Climate data, UK Public Sector Net Borrowing data and CB Consumer Confidence, New Home Sales, and Richmond Manufacturing Index data from the US.
USD/CAD analysis for 24/04/2018:
On Monday evening the president of Bank of Canada Poloz spoke in the parliament and his message was similar to last week's press conference after the meeting of the central bank. He said that inflation this year should stay slightly above the 2.0% target. supported by transitional factors. The greatest threat to the forecasts is the uncertainty about changes in global trade policy towards protectionism. He added that the uncertainty factors are the same as 6 months ago, although some have made good progress. In conclusion, relatively hawkish comments from Poloz, but the CAD still getting weaker on the wave of USD appreciation across the board.
Let's now take a look at the USD/CAD technical picture in the H4 time frame. The market has broken out of the descending channel and tested the 50% Fibo retracements at the level of 1.2822 and it looks like it is heading towards the 61$ Fibo at the level of 1.2892 despite the overbought market conditions. The immediate technical support is seen at the level of 1.2802 - 1.2813 and the next technical resistance is seen at the level of 1.2947.
