Chart Of The Week: USD/CAD's 50% mean reversion target, 1.3060s

USD/CAD bearish technical set-up for the week ahead.
61.8% Fibo target reached and bears looking for bearish continuation.
Bearish pin-bar to trendline support reinforces bearish bias.
Below 1.3080, the 50% mean reversion of the latest swing range at 1.3060 is in focus.

Ross J Burland FXStreet

USD/CAD BoC spike following fake-breakout

USD/CAD daily chart and possible downside continuation set-up

USD/CAD weekly chart confirms the downside bias below daily trend support

61.8% Fibonacci reached, reinforces downside bias

50% mean reversion the cards on break of 1.3080 support

The USD/CAD chart favours a bearish bias following a series of technical developments on the daily and weekly chart. The US dollar of late has been firmer and the dovish switch-up at the Bank of Canada ignited a spike to the upside, taking out stops along the way. While a run of weak Canadian domestic economic data has shifted focus to concerns about the Canada-specific growth backdrop, there will be a ken focus on this week's November Canadian GDP.

While the BoC may be on the verge of a rate cut this quarter, perhaps in April, economic data is known to be volatile for Canada. Considering the likelihood of a pullback, we could expect a 50% mean reversion to said support while we wait and see what comes of the GDP at the end of the week. An unchanged GDP would leave Q4 tracking near the BoC's latest projections (0.3%) and may not rock the boat too much. A neutral Fed with a twist of dovishness will likely weigh on the US dollar with 97.00/35 support targets in focus on a downside correction.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.