USDCAD seems to be pursuing its proclaimed bearish direction, something also conveyed through the dominant negative bearing within the simple moving averages (SMAs). The short-term oscillators as well as the falling Ichimoku lines deliver a negative demeanour reinforcing this view.
The MACD, some distance in the negative region, is decreasing below its red signal line, while the RSI is slipping further in oversold territory. Moreover, the stochastic oscillator has retreated into the oversold zone, promoting further losses in the pair.
To the downside, sellers may be initially challenged by the 1.2975 barrier of January 8 ahead of the nearby 1.2951 year end low, identified on 31 December 2019. Should the pair weaken further, the 1.2915 obstacle from October 2018 may come into play, prior to the 1.2886 border.
If buyers resurface, early limitations may arise from the 1.3046 inside swing low, coupled with the red Tenkan-sen line. Pushing higher may encounter some friction from the blue Kijun-sen line at 1.3097 ahead of a resistance band from 1.3125 - 1.3132. Nudging above this, the 50-period SMA at 1.3144 and the 1.3165 high may prevent the climb from testing the cloud and 100-day SMA around 1.3197. Should the cloud and neighbouring diagonal line - drawn from 1.4667 - fail to dismiss further advances, the pair may target the 1.3239 tough barrier ahead of the 1.3270 peak.
In brief, USDCAD continues to present a strong short-to-medium-term bearish bias below the descending line and the SMAs.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD rises toward 1.0800 as USD weakens
EUR/USD has gained traction and advanced toward 1.0800 in the early American session on Monday. The positive opening witnessed in Wall Street makes it difficult for the US Dollar to find demand and helps the pair continue to push higher.
GBP/USD closes in on 1.2300 as mood improves
GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.
Gold recovers above $1,950, stays deep in red
Gold price has managed to stage a modest rebound in the American trading hours and rose above $1,950 from the daily low it set at $1,944. The benchmark 10-year US Treasury bond yield is still up more than 3% despite having retreated from session highs, not allowing XAU/USD to gain traction.
Four reasons why SUSHI holders will have a bullish week despite SEC's move
SushiSwap price undid the early March gains in the last week after the SEC subpoenaed the platform’s head chef Jared Grey. As a result of this announcement, the token collapsed by roughly 18%.
Alibaba (BABA) edges higher after Jack Ma returns to China for AI talk
BABA shareholders begin the week with a glimmer of hope after founder Jack Ma was seen visiting China after spending more than one year abroad. The report originally led to Alibaba's shares in Hong Kong rising 4% before subsiding.