Highlights

USDCAD recovers bullish momentum on Monday, despite a little drop in the price of oil.
The US Fed’s hardline stance remains to strengthen the dollar.
The underlying background calls for prudence prior to preparing for more increases.

Fundamental Overview

The USDCAD duo gets modest dips &-buy in the opening day. However, it lacking follow-up and stays confined to a usual pattern established during the last week. The spot currencies are now trading slightly around the middle range-1.3700s. rising little than 0.1 percent on Monday due to a variety of divergent influences.

At this point, lower-than-expected American CPI & PPI pricing statistics reported this week. Which imply that price growth is slowing –  Furthermore, an unforeseen reduction in American import costs bolstered national inflation expectations. This, paired with a strong decline in American consumer confidence in the month of June. Puts an initial U.S Fed rate decrease for Sept on the agenda. This prevents $ buyers from making bold wagers and may limit the possible gains of the USDCAD unit.

5- Hourly Plot Technical Indicators

AUDUSD

On Monday, the Australian dollar fell for the 3rd day in a row as the U.S. $ strengthened globally. The dollar is still backed by the idea that American rates of interest would remain elevated for a longer time. Despite a consensus prediction from the US central bank policymakers asking for a single rate drop during the year.

Technical Analysis

The AUD is lower on the current day. The AUDUSD duo’s positive prognosis appears susceptible. Since it stays near the crucial 10D-EMA located on the daily graph. As previously said, should the unit passes under the crucial EMA, it might restart its downward trend. Furthermore, the 14 d- timeframe RSI remains beneath the 50-the middle, Implying, that extra decline cannot be priced aside for the moment.

The immediate future Outlook

The Reserve Bank of Australia’s presser, the retail sales in the US info, and initial Service PMI readings will all have an impact. – And, its patterns in the coming days. Latest Australia’s employment statistics may allow the central bank to look into negotiations on rates decreases. The increasingly dovish Bank approach might shift its interest rate dispersion towards America’s currency.

Technical Analysis

The AUDUSD remained over the 50 & 200 D- EMAs, confirming positive pricing signs. If the Australian dollar breaks over the $0.6650 mark, it will likely proceed towards the $0.6700 barrier line. In addition, the failure of the $0.6700 hurdle might indicate an upward trend towards $0.6750 area. In the course of the day, emphasis should be paid to Aussie consumer price standards. With employment listings, and Chinese economic indicators.
If the AUDUSD falls beneath the 50 D-EMA, it will test the 200 D- EMA and key $0.65761 supporting zone.

Technical Indicators & Signals