<p>On the daily chart below, we can
see that the price is sitting at a strong key <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> level at 1.3664 where we can
also find <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> with the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a>. The sellers are most likely to lean on this level with defined risk if
the price breaks below it. </p><p>The strong selloff in <a target=“_blank“ href=“https://www.tradingview.com/chart/CIPuZN0R/?symbol=NYMEX%3ACL1%21″>oil
prices</a> recently, may weigh on the CAD and the possible recession should be
positive for the USD as a safe haven. Today, we will also see the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>Canadian CPI</a> and it’s likely that a miss in
the data would be negative for the CAD and a beat would keep the market in a
range ahead of the FOMC decision tomorrow.</p><p>On the 4 hour chart below, we can
see that the level at 1.3664 has also support from the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level just below it. This will be the zone where
the buyers will lean onto in expectations of a resumption of the uptrend. The
sellers, on the other hand, will try a break below to get more conviction and
start a bigger fall. </p><p>On the 1
hour chart below, we can see that the buyers have tried several times to break
above the counter-<a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> but with no success yet. We
should see the buyers jumping in strongly once we get the breakout. The market
is focused on the FOMC decision tomorrow and we may keep seeing this choppy
price action until then. </p>

This article was written by ForexLive at www.forexlive.com.

<ul><li style=““ class=“text-align-justify“>Treasury, Fed, FDIC actions reduced risk of further bank failures that would have imposed losses on deposit insurance fund</li><li style=““ class=“text-align-justify“>Similar actions to protect depositors could be warranted if smaller institutions suffer deposit runs that pose risk of contagion</li><li style=““ class=“text-align-justify“>Aggregate deposit outflows from regional banks have stabilised</li><li style=““ class=“text-align-justify“>Fed is working to provide <a target=“_blank“ href=“https://www.forexlive.com/terms/l/liquidity/“ class=“terms__main-term“ id=“633aaf0b-b4a1-40c5-8fbe-bf158af520a1″ target=“_blank“>liquidity</a> to banking system, which is stabilising</li></ul><p style=““ class=“text-align-justify“>This is just a rehash of their commitment to safeguard bank deposits. For now, we might turn the page to the next chapter. But we shall see whether or not lawmakers, policymakers and regulators alike will have learned anything from this episode.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>The lack of any negative headlines in itself is a positive development, and that is what’s helping broader market sentiment today I would say. The banking turmoil has caused plenty of panic and worries but it looks like we are finally seeing traders and investors breathe a much needed sigh of relief.</p><p style=““ class=“text-align-justify“>2-year German bond yields are now 20 bps today to 2.52% while 2-year Treasury yields are up 15 bps to 4.07% at the moment.</p><p style=““ class=“text-align-justify“>It still doesn’t take away from the plunge that we have seen in the past week or so but it is at least a start. That indicates safety bets are starting to abate and we are seeing equities benefit as a result. Here’s a snapshot of things in Europe:</p><ul><li>Eurostoxx +1.8%</li><li>Germany DAX +1.7%</li><li>France CAC 40 +1.7%</li><li>UK FTSE +1.4%</li></ul><p style=““ class=“text-align-justify“>Meanwhile, S&amp;P 500 futures are also seen up 25 points, or 0.6%, at the moment with Dow futures also seen up 0.6% and Nasdaq futures up 0.3% on the day.</p><p style=““ class=“text-align-justify“>In FX, things are more mixed though but the Japanese yen is among the laggards as bond yields climb higher. USD/JPY is up 0.8% to 132.30 levels now with the dollar sitting more mixed – down against the euro and franc but up against the pound and antipodeans.</p>

This article was written by Justin Low at www.forexlive.com.