USD/CAD hopes for a new bullish correction [Video]

Christina Parthenidou XM

USD/CAD has been in a range for the second consecutive week, unable to extend its rebound off a nine-month low of 1.3115 above the nearby resistance of 1.3225.

The odds for a bullish extension are increasing, given the positive slope in the momentum indicators. But with the RSI fluctuating below 50 and the MACD remaining within the negative zone, any improvement may be brief.

If the price sustains today’s bullish move above the 20-day SMA and 1.3225, the falling 50-day simple moving average (SMA) could first halt upside pressures at around 1.3300. Then, the 1.3340-1.3380 constraining zone, which encapsulates the former support trendline, the 50% Fibonacci retracement level of the 2020-2021 downtrend, and July’s high, could delay an extension towards the 200-day SMA at 1.3455. Yet only a sustainable close above the broad bearish channel and beyond 1.3500 would brighten the short-term outlook.

Alternatively, a pullback could re-examine the strong 1.3100-1.3145 support area, where the ascending trendline from May 2021 is positioned. If they break that base, the bears could immediately target the channel’s lower boundary, which coincides with the 38.2% Fibonacci mark and the flatter tentative ascending trendline from May 2021 at 1.3028. Should downside forces strengthen below the 1.3000 psychological level, the price might seek shelter at around 1.2900.

To sum up, USD/CAD has been stubbornly pushing for a close above 1.3225 despite its unsuccessful attempts. If it breaches that bar this time, the pair could enjoy some recovery, though it will need stronger buying confidence to cross above the tough 1.3300-1.3380 resistance area.

Author

Christina Parthenidou

Christina joined the XM investment research department in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.