-
USDCAD treats its wounds with solid bounce.
-
Caution needed as familiar resistance nearby.
USDCAD gathered significant momentum on Thursday, flipping weekly losses into a 0.20% gain after a slightly stronger US CPI report.
The pair kept its footing above its simple moving averages (SMAs), but the descending trendline from the 2020 top resumed its resistance role, halting the bullish action marginally below 1.3700. Despite some positive signs coming from the RSI and the stochastic oscillator, the bulls need to break through that threshold to move towards the 2023 wall of 1.3800-1.3860. The 2022 peak of 1.3276 could be the next destination.
On the downside, the 20- and 50-day SMAs could hold the market above the short-term support trendline drawn from July near 1.3500. Note that the 200-day SMA is flattening in the same region. Hence, a step lower could trigger another negative correction towards the support line from November at 1.3390. Failure to bounce there could squeeze the price into the 1.3245-1.3290 zone, where the upper band of the broker bearish channel intersects the 2021 ascending trendline.
In brief, the recent solid rise in USDCAD looks appealing, but it may not last if it can't run sustainably above 1.3700.
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 remains heavy below 1.0550 as focus shifts to US ISM PMI
EUR/USD remians under heavy selling pressure below 1.0550 in early European session on Monday. The pair is dragged down by dovish ECB-speak and a firmer US Dollar following Trump tariffs threat on BRICS-fuelled flight to safety. Investors now look forward to US ISM Manufacturing PMI data due later in the day.
GBP/USD holds losses near 1.2700 on stronger US Dollar
GBP/USD consolidates losses near 1.2700 early Monday, reversing a major part of Friday's positive move. The slide is sponsored by a goodish pickup in the haven demand for the US Dollar, as traders remain wary over the latest Trump tariffs threat on BRICS nations. US ISM PMI is next in focus.
Gold price remains heavily offered amid renewed USD buying interest
Gold price meets with heavy supply on Monday and snaps a four-day winning streak. Rebounding US bond yields help revive the USD demand and weigh on the commodity. Trade war concerns and geopolitical risks do little to lend support to the XAU/USD.
Bitcoin consolidates while ETH, XRP rallies
Bitcoin consolidated on Monday following its recovery from last week's pullback. At the same time, Ethereum and Ripple extended their rallies, driven by investors reallocating capital from BTC to altcoins, signaling the potential for continued upward momentum.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.