17 Dec 2014
USD/CAD bulls getting squeezed post FOMC dovishness
FXStreet (Guatemala) - USD/CAD is trading at 1.1583, down -0.44% on the day, having posted a daily high at 1.1673 and low at 1.1560.
USD/CAD has been further punished to the downside on a more dovish than expected FED that were releases the FOMC statement in respect of their forward guidance and future interest rate policy.
The Loonie was dragged along by the dollar and was at first volatile with a bid that took the pair higher around the 1.1620 resistance/support level but then as markets digested the dovishness in the statement, the dollar fell out of bed and dragged funds lower as risk on continued throughout the financial markets.
The risk here are for the committed longs as a long squeeze continues ahead of what be a further opportunity to get long or add to long positions in a broader bullish trend targeting the top side of the channel and through 1.1680 for 1.1700 and on wards.
We now listen to Yellen's press conference for clues outside of the statement and indications as to when the rates will be hiked. "Considerable time" is still there, but the committee judged that some change to their guidance was appropriate and that has included the job gains improvements and how the Fed will be patient in their timings of a rate hike.
USD/CAD has been further punished to the downside on a more dovish than expected FED that were releases the FOMC statement in respect of their forward guidance and future interest rate policy.
The Loonie was dragged along by the dollar and was at first volatile with a bid that took the pair higher around the 1.1620 resistance/support level but then as markets digested the dovishness in the statement, the dollar fell out of bed and dragged funds lower as risk on continued throughout the financial markets.
The risk here are for the committed longs as a long squeeze continues ahead of what be a further opportunity to get long or add to long positions in a broader bullish trend targeting the top side of the channel and through 1.1680 for 1.1700 and on wards.
We now listen to Yellen's press conference for clues outside of the statement and indications as to when the rates will be hiked. "Considerable time" is still there, but the committee judged that some change to their guidance was appropriate and that has included the job gains improvements and how the Fed will be patient in their timings of a rate hike.