Bearish outlook resumes for the U.S. Dollar as rate hike may be pushed back further

The U.S. Dollar is returning its gains from this week’s market open move. I have been watching the USDCAD pair for the past little while and made my second entry in this multiple tops. 

USDCAD Supply Level

This zone dates back to near the end of April where the initial selling occurred. If you were to look at the hourly and shorter time frames, this pair appears to be in a bullish uptrend. However, I would definitely say this trend has weakened or even reversed given the multiple tops.

USDCAD Multiple Tops

Here is a closer look on the 5-minute time frame. As you can see, price started ranging. Focusing on the tops as we are supposedly in an uptrend, price failed to break into new high territory. As the market failed to produce new highs, we can say that the buying pressure is easing off. This makes sense especially as the Fed rate hike discussion is still on board.

Not going to talk a whole lot about this as we focus on the technical aspects, but there are two articles you’ll want to check out on delaying the rate hike to 2016:

Bloomberg: Many Fed Officials Saw June Rate Rise as Unlikely, Minutes Show

Reuters: UPDATE 1-Fed’s Evans – rate hike not appropriate until early 2016

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