All things being equal, if we reverse and take out the 50-day EMA just above the 1.35 level, we allow a move to the 1.3750 level, where we have seen a lot of resistance. USD , /CAD is lower against the Canadian dollar during Thursday’s trading after CPI readings rose 6.5% year-on-year. Markets are celebrating because they believe the Fed will taper faster than expected. The idea of 6.5% annual inflation in the United States is absurd. In other words, the Fed still has a lot of work to do, but recently we’ve had a number of Fed speakers that add confusion to the market. I’m looking at you, San Francisco Fed Governor. Ad image READY TO MAKE YOUR MONEY WORK FOR YOU? TRADE NOW The market seems to continue its decline, with the 200-day EMA below the 1.33 level, possibly closer to the 1.3250 level. If the market were to break below the 1.32 level, it would be very difficult for the USD, but for now I think it is more likely than not in the long term. . simply because it is the „measured movement” of the rising wedge broken below. Some of these patterns are dubious at best and require fundamental reasons to move. Right now it looks like the oil market is also trying to help the Canadian dollar, but Canada is a complete mess. The pair is expected to be very noisy Inflation is high in Canada, as I saw with my own eyes last week in the province of Québec. A stronger Canadian dollar may help them, but in terms of employment, Canada’s last employment number was scorching hot, so that may be part of what we’re seeing here, traders are trying to bet on the easing of the fat, and Canadians may have to . to fight inflation much longer than originally thought. All things being equal, if we reverse and take out the 50-day EMA just above the 1.35 level, we allow for a move to the 1.3750 level, where we have seen a lot of resistance. This pair is very noisy, but not too surprising considering that this is quite often the normal situation in these currency markets, since the US and Canada are each other’s largest trading partners, and therefore a large part of the visible activity was done of necessity