USDCAD’s two-week decline from 1.2774 is currently testing the support base of 1.2422-1.2433 that has withstood downside pressures from early July. The simple moving averages (SMAs) are validating the pair’s plunging trajectory and the recent bearish crossover of the 200-period SMA by the 100-period one could further boost the descent.

The Ichimoku lines are indicating a pause in downward forces, while the short-term oscillators are demonstrating that bearish momentum is escalating again. The MACD some distance below zero is looking set to push back below its red trigger line, while the RSI is putting strain on the 30 oversold level. The stochastic oscillator has retained its negative charge and is promoting additional selling in the pair.

If sellers remain in control, prompt downside limitations could stem from the 1.2422-1.2433 support belt. Should this barricade fail to halt the decline from extending lower, the price may meet the 1.2371 barrier before plunging towards the July 6 trough of 1.2300. If the bears stay in the driver’s seat, they could then target the 1.2251-1.2271 support band.

To the upside, if the price finds some traction off the 1.2422-1.2433 base, initial hindrance may commence at the red Tenkan-sen line at 1.2466 ahead of the resistance zone of 1.2498-1.2518. Conquering the latter obstacle, which is also overlapped by a minor tentative downtrend line pulled from the 1.2774 high, the bulls could jump to challenge the Ichimoku cloud’s lower band and the resistance section of 1.2544-1.2568. If buying interest intensifies and the price floats above the 1.2600 handle and the cloud, the pair could encounter next resistance in the region between the 100-period SMA at 1.2630 and the 1.2647 high.

Summarizing, USDCAD is emanating a strong bearish tone. Sellers could dominate with a break below 1.2422, while a climb in the price above 1.2600 and the cloud is necessary to boost bullish confidence.

USDCAD

Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more

Majors

Cryptocurrencies

Signatures