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WHAT CAN BE THE NEXT SCENARIO OF THE USDCAD PAIR?

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We've noticed that recent data about the USD suggests a positive turn. For example, the Non-Farm Employment Change on January 5th increased to 216k from the previous 173k. The Unemployment Rate dropped from a predicted 3.8% to 3.7%, and the Consumer Price Index rose by 0.3% in January, up from 0.1% in December. Other indicators like Retail Sales and Consumer Sentiment were also positive for the USD. Meanwhile, Canada's inflation rate remains steady at 3.1%, indicating good control by the government. However, Canada is dealing with challenges like a job crisis, housing issues, high mortgages, and GDP concerns. Despite rate hikes, Canada's recent employment change was only 0.1k in January compared to 24.9k in December, a significant drop. While the USA has its challenges, Canada is expected to face even more difficulties.

USDCAD showed a strong rebound from its December low at 1.3177and now it’s facing 50 days EMA (Exponential Moving Average) resistance which slowed the upward movement of USD if we draw Fibonacci from the previous high of 1.3890 points to 1.3177point low now USD facing resistance from 50 Fibonacci mark. But if we consider Recent positive fundamental Data of the US and also the weekly candle then the USD might be able to break the 50 days EMA in the daily chart and continue the up movement at least near about 1.36502 resistacne point. Or if the daily candle movement continues the Bearish momentum then it might bounce from Fibonacci’s 50 ( what showed in the picture)  which is also Bollingar middle Band support in the previous support zone.                                                                                                                                                                                                                                                              However, it is tough to CAD domination as far as CAD faces so many problems. There is a high chance that the price will continue upside movement from where the weekly candle ended an inverted hammer along with 50 Days EMA.

There is nothing guaranteed in trading so don't forget to apply proper Risk management and combine any idea with your technical chart and tactics. 

 
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