Share:

USDCAD has been moving sideways over the past two weeks, building a floor around 1.3370, but the bears seem determined to lead their market on their own way ahead of the BoC rate decision today at 15:00 GMT.

 

With the RSI pulling below its 50 neutral mark and the MACD sliding back below its red signal line within the negative area, downside moves are more likely than upside ones in the coming sessions. The stochastic oscillator is also on a decline, though it’s not far away from oversold territory, suggesting that some consolidation may soon develop.

The tentative support trendline from June’s low could immediately come to the rescue at 1.3313 if selling pressures strengthen. Should the bears snap that base, the price could revisit the 38.2% Fibonacci retracement of the 1.2006-1.3976 upleg at 1.3270, where November’s bullish rotation took place. Note that the 200-day simple moving average (SMA) is converging towards that zone. Hence, a decisive close lower could aggressively press the price towards the crucial 1.3026 level, where the constraining 200-SMA is flattening in the weekly chart, unless the 1.3120 handle provides a strong footing beforehand.

In the bullish scenario, a bounce higher may initially rechallenge the 20-day SMA at 1.3450 ahead of the 23.6% Fibonacci level of 1.3511. Still, only a sustainable recovery above the tentative resistance trendline currently around 1.3600 could prompt a meaningful rally up to the key 1.3700-1.3745 constraining area. The 1.3800 psychological number could be the next target.

Summing up, the technical picture for USDCAD is currently discouraging, flagging more downside. Yet traders may wait for a close below 1.3313 before they reduce their exposure to the market. 

Chart

Share: Feed news

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

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

AUD/USD holds lower ground near 0.6950 amid US Presi. Biden's SOTU

AUD/USD holds lower ground near 0.6950 amid US Presi. Biden's SOTU

AUD/USD has turned south and tested 0.6950 amid a pause in the US Dollar decline this Wednesday. Markets pay close attention to US President Joe Biden's annual State of the Union speech. Biden delivered some tough remarks on China. 

AUD/USD News

EUR/USD grinds higher past 1.0700 even as US President Biden’s SOTU sounds tough on China

EUR/USD grinds higher past 1.0700 even as US President Biden’s SOTU sounds tough on China

EUR/USD floats around 1.0725-30 after snapping a four-day downtrend as the pair traders struggle to believe in the hawkish comments from US President Joe Biden’s State of the Union (SOTU) speech.

EUR/USD News

Gold bulls eye 50% mean reversion

Gold bulls eye 50% mean reversion

The Gold price finished the day pretty much unchanged amid a US Dollar which was mixed across the board, pushed and pulled over the comments from the Federal Reserve's Jerome Powell who was speaking at The Economic Club of Washington, D.C. Signature Even.

Gold News

Why Cosmos price is likely to rally toward $17 in February

Why Cosmos price is likely to rally toward $17 in February

Cosmos price continues to display strength as the uptrend seems unfazed by investors who may be taking profit off January's 70% gain. Considering the overall bullish stance in the crypto market, a 15% rally from today’s market value is a conservative estimate.

Read more

Soft landing, hard landing, no landing?

Soft landing, hard landing, no landing?

The Dollar has started the year on a soft footing on the view that the Fed can respond to a soft US landing, as the Rest of the World recovers. The recent run of data, especially out of the US, questions whether the Fed needs to cut rates at all.

Read more

Majors

Cryptocurrencies

Signatures