Technical Analysis – USDCAD in downtrend; consolidates near key 1.25 level

XM Research Department XM

USDCAD is in a clear downtrend after making lower highs and lower lows for the past two months. On the 4-hour chart, the downside bias is showing signs of exhaustion though. A low of 1.2480 was reached on July 25 and the market is expected to consolidate around this level in the near term.

The MACD is indicating divergence, as it is sloping upwards while USDCAD is sloping downwards. This suggests that downside is limited for now and short-term bottoming is possible to turn the bias back to the upside as long as support holds at 1.2480. Of course, the round-level at 1.2500 is an important area around which prices are pivoting.

Upside moves may be limited as the market is capped by the falling 20-period moving average. Key resistance levels are located at 1.2700 and 1.2945.

The technical picture remains bearish, as the 20SMA is sloping downwards and both RSI and MACD are in bearish territory (below 50 and below zero respectively). Further downside cannot be ruled out at this stage as there are no signs of a reversal in the current downtrend. A break below the July 25 low of 1.2480 would open the way towards the May 2016 low of 1.2460.

Interested in USDCAD technicals? Check out the key levels

1. R3 1.2589
2. R2 1.2561
3. R1 1.2535
PP 1.2508
1. S1 1.2482
2. S2 1.2454
3. S3 1.2428

Author

XM Research Department

Manned by a powerful team of professionals, along with certified forex instructors, the XM Research and Education Center provides a full range of up-to-date marketing tools essential for profitable trading, including market analys

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.