But the breakout could not stick. As Wall Street clawed back early losses and U.S. yields turned lower, focus shifted to policy divergence. Fed Governor Bowman echoed Governor Waller’s Friday remark that a July rate cut “could be on the table,” highlighting an emerging rift with Chair Powell’s more cautious stance. The dollar reversed, pulling USDCAD back inside the yellow-shaded swing band and more recently back below it.
Conversely, a recovery back into the swing area and above the 1.3771 and the 50% at 1.3778 would re-energise buyers and open the door toward 1.3814 and then the 61.8% at 1.3824 as targets.
Resistance
1.3814 (minor May pivot)
Support
1.3701 (100-hour MA; starts broader support band)
As long as geopolitics and Fed rhetoric tug in opposite directions, expect two-way flows with traders leaning against the levels above.
PS: The chance of a July cut is up to 20% while the chance for a September cut is now 80%. Two Fed officials is greater that 1. Moreover, there is the hint of politics with the quick rebuttal of the Fed chair, who just on Wednesday, implied the Fed is resolute to wait it out, that a tariff induced inflation spike was forthcoming.
This article was written by Greg Michalowski at www.forexlive.com.Hence then, the article about usdcad squeezes higher then slips as dovish fed talk trumps war premium bid was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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