Technical analysis: Is USD/CAD set to recover further?

JFD Team JFD

USD/CAD rebounded strongly on Thursday, breaking above the 1.3407 resistance, marked by Tuesday’s high, thereby completing a possible “double bottom” formation. The completion of the pattern has confirmed a forthcoming higher high and suggests that the short-term outlook has turned somewhat positive.

If the bulls are willing to stay in the driver’s seat, we may soon see them aiming for the 1.3445 level marked by the high of July 24^th, where another break may extend the advance towards the peak of July 22^nd, at around 1.3485. That said, in order to get confident on larger bullish extensions, we would like to see a decisive move above the psychological barrier of 1.3500. Such a move may pave the way towards the 1.3565 area, which is marked as a resistance by the inside swing low of July 17^th.

Looking at our short-term oscillators, we see that the RSI lies above 50, pointing up, while the MACD, although slightly negative, lies above its trigger line, and points north as well. Both indicators suggest that the rate may start picking up upside speed soon, which corroborates our view for some further near-term advances.

On the downside, we would like to see a decisive dip below 1.3310, before we start examining the resumption of the prevailing downtrend. Such a move would confirm a forthcoming lower low and may initially aim for the 1.3265 zone, which is the low of February 25^th. Another break, below 1.3265, could encourage the bears to extend the slide towards the 1.3215 area, which provided decent support between February 19^th and 21^st.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.