CANADIAN DOLLAR, NASDAQ 100 OUTLOOK:
- Canadian greenback weakens, pressured by decrease oil costs and the broader U.S. greenback rebound
- USD/CAD breaks above its 200-day easy shifting common, a constructive signal for bulls
- Nasdaq 100 slides, with costs rejected at resistance and forging a double high
Most Learn: Gold (XAU/USD) Value Below Yield Strain, Assist Degree Nears
| Change in | Longs | Shorts | OI |
| Each day | -18% | 17% | -5% |
| Weekly | 2% | 25% | 12% |
USD/CAD ANALYSIS
The U.S. greenback, as measured by the DXY index, regained misplaced floor on Wednesday after reasonable losses within the earlier session, boosted by rising U.S. Treasury charges, particularly these on the entrance finish of the curve, which pushed the 2-year yield briefly to 4.28%, its highest stage since March 15.
The outperformance of the buck weighed on some developed market currencies, such because the Canadian greenback, with USD/CAD up 0.32% at 1.3435, though there have been different catalysts contributing to right this moment’s worth motion.
As an example, the loonie was additionally harm by the sharp drop in oil costs. WTI for June supply sank as a lot as 2% to 79.40 in late morning commerce, undermined by the demand worries. Crude is one in all Canada’s high exports, so the home forex tends to weaken when vitality costs retreat.
Taking a look at USD/CAD’s technical profile, the pair has recovered reasonably after bouncing off trendline help late final week close to the psychological 1.3300 stage; in reality, the worth has recaptured its 200-day shifting common, a welcomed signal for bulls.
If good points speed up within the close to time period, preliminary resistance stretches from 1.3475 to 1.3515, adopted by 1.3560, close to the 50-day easy shifting common. On the flip aspect, if sellers return and set off a bearish reversal, help seems at 1.3400, and 1.3290 thereafter.
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NASDAQ 100 ANALYSIS
The Nasdaq 100 fell on Wednesday, down about 0.6% to 13,010 on the time of writing, dragged decrease by rising U.S. Treasury yields, that are broadly seen as a headwind for the know-how area. As well as, the sharp drop in Netflix shares following disappointing quarterly outcomes additionally crimped the benchmark’s efficiency.
From a technical evaluation standpoint, the index entered a bull market earlier this month after rallying greater than 20% from its 2023 lows. Whereas this growth is in itself bullish, warning is warranted as costs have been forging a double-top sample in latest weeks, an indication of exhaustion of upside momentum.
If the double high is validated, the Nasdaq 100 might head sharply decrease in brief order, with a retest of the late March low close to 12,500 probably coming into play. By way of technical indicators, the bearish configuration could be confirmed with a break beneath help at 12,835.
However, if costs resume their ascent, preliminary resistance seems at 13,200. A breakout to the upside would nullify the double high formation, setting the stage for a rally in the direction of 13,610, which corresponds to 50% of the Fibonacci retracement of the November 2021/October 2022 sell-off.
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