USD/CAD Price Analysis: Recovers around 50-60 pips from over 1-week lows
|- USD/CAD added to the overnight losses and dropped to over one-week lows on Thursday.
- Weaker oil prices undermined the loonie and helped limit deeper losses, at least for now.
The USD/CAD pair dropped to over one-week lows, closer to mid-1.4000s during the early North-American session, albeit quickly recovered few pips thereafter.
The overnight break below 200-hour SMA and a subsequent slide below the 38.2% Fibonacci level of the 1.3518-1.4668 upsurge acted as a key trigger for bearish traders.
However, the intraday downtick showed some resilience below 50.0% Fibo. level amid slightly oversold conditions on the 1-hourly chart and weaker crude oil prices.
Meanwhile, technical indicators on the daily chart – though have been correcting – have still managed to hold in the bullish territory and warrant some caution for bears.
Hence, it will be prudent to wait for some strong follow-through selling, possibly below daily swing lows, around the 1.4070-65 region, before positioning for a further slide.
Sustained break through the mentioned support will set the stage for an extension of the pair’s recent sharp retracement slide from multi-year tops set last Thursday.
On the flip side, any meaningful recovery attempt might confront some fresh supply the 1.4190-1.4200 region and seems more likely to remain capped ahead of 38.2% Fibo.
USD/CAD 1-hourly chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.