Comprehensive USD/CAD for November 2, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USD/CAD for 2nd November 2023. 

Key Takeaways 

• Federal Reserve’s attitude: The interest rate decision of Federal Reserve did not change the policy interest rate as expected. Fed members have been working hard to balance the two risks. They do not want to raise interest rates too much and cause an unnecessary deep recession, nor do they want to accelerate inflation again or stabilize well above the 2% target. 
• The Canadian dollar may be favored: The Canadian employment survey shows that the labor market continues to be tight and wages continue to rise significantly. The unexpectedly strong data raised the possibility of further interest rate hikes from the Bank of Canada, while the prospect of higher oil prices also increased the likelihood of a higher Canadian dollar. 

USD/CAD Technical Analysis 

USD/CAD Daily Chart Insights

• Stochastic Oscillator: After the indicator formed a short signal in the overbought area, it began to turn downward yesterday, suggesting that the exchange rate may begin to decline. 
• Price Action: After the exchange rate fluctuated at a high level for four trading days, it closed as a small doji candle yesterday. If it finally closes the dark candle bar today, the market may adjust downward in the future. 
• 5-day moving average: The 5-day moving average has supported the continuous upward trend. If the market closes below the 5-day moving average, the upward trend of the exchange rate will end in the short term. 

USD/CAD 1-hour Chart Analysis

• Stochastic oscillator: The indicator is still in the oversold area, and there is no bull signal, suggesting that the current short forces have the upper hand and cannot easily choose to buy the bottom. 
• Price Action: Since October 31st, it has fluctuated at high levels to form a rectangular range. After the market fell below the range, the red 65-period moving average failed to support the decline. The next target of the market is the black support line, which may also be the 200-period moving average. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 1.38655, 
• Bullish Scenario: Bullish sentiment prevails above 1.38655, first target 1.38898, second target 1.39233; 
• Bearish Outlook: In a bearish scenario below 1.38655, first target 1.38321, second target 1.38076. 

Conclusion