Technical analysis by kumailshah142 about Symbol PAXG on 5/19/2023

USD/CAD Sticks to Mild Losses Amid Sluggish Markets Ahead of Key EventsThe USD/CAD pair is experiencing mild losses as sluggish market conditions prevail, setting the stage for upcoming key events. The US Dollar, despite expectations of a hawkish stance by the Federal Reserve, struggles to gather momentum ahead of Federal Reserve Chair Jerome Powell's speech. Meanwhile, WTI crude oil is poised to secure its first weekly gain in five, hovering around $72.50, thanks to cautious optimism in the market.US-China tensions and concerns regarding the US debt ceiling are encouraging buyers of the Loonie pair, even as market attention shifts back to the divergence between the Federal Reserve and the Bank of Canada. The USD/CAD pair is currently flirting with the round figure of 1.3500, with bulls and bears vying for control amidst the recent easing of the US Dollar and the rebound in WTI crude oil during the early hours of Friday morning in Europe. In this context, the Loonie pair reflects the cautious sentiment prevailing in the market ahead of significant upcoming events.Meanwhile, the US Dollar Index (DXY) is fluctuating at its highest levels in two months, driven by headlines suggesting that the US House Freedom Caucus has the ability to obstruct any agreement to raise the $31.4 trillion debt ceiling. This development amplifies concerns about a potential US default and prompts buyers of the DXY in recent times. Additionally, the US-Taiwan trade deal adds to the challenges faced by optimists, with planned meetings between China's Commerce Minister Wang Wentao, USTR Tai, and US Commerce Secretary Gina Raimondo further contributing to the market's unease.On the other hand, WTI crude oil is anticipating its first weekly gain in five weeks, with prices rising to $72.50 in the latest session. It is important to note that despite the DXY eyeing its second consecutive weekly gain, this has failed to exert downward pressure on energy prices. This is primarily due to expectations of increased commodity demand resulting from hopes of avoiding a US default and anticipation of further easing measures in China.Elsewhere, the market's confidence in a potential rate cut by the US Federal Reserve in 2023 has declined, while the likelihood of a 0.25% rate hike in June has increased. Stronger US data and hawkish comments from Fed officials have contributed to the previous rally of the US Dollar. Furthermore, concerns regarding the ability of US policymakers to overcome default fears have favored the greenback bulls, thus fueling the USD/CAD pair.In the midst of these developments, S&P500 Futures are struggling to reach new yearly highs, currently recording modest gains near 4,220. After reaching its highest levels since August 2022 the previous day, stock markets in the Asia-Pacific region are trading mixed. Meanwhile, the US 10-year and two-year Treasury bond yields hesitate to extend their five-day uptrend at the monthly peaks.Looking ahead, the release of Canada's Retail Sales for March is expected to precede Jerome Powell's speech, which will guide the intraday movements of the USD/CAD pair. However, the primary focus will be on US President Joe Biden's press conference, scheduled for late Sunday, regarding the extension of the debt ceiling.Technical AnalysisFrom a technical standpoint, the USD/CAD pair remains susceptible to further downside as it faces resistance from the 100-day moving average (100-DMA) and a two-month-old resistance line. These levels, located near 1.3510 and 1.3565 respectively, are currently impeding short-term upward movement of the Loonie pair.