USDCAD stretched this week’s decline until the 61.8% Fibonacci of 1.3150 of the upleg from 1.3041 to 1.3326 despite the declining risk-off sentiment.

With the RSI testing its 30 oversold mark, the odds for an upside correction in the short-term are rising. However, with the 20-period simple moving average (SMA) in the four-hour chart crossing below the longer-term 200-period SMA, a trend improvement may come later than sooner, especially as the price keeps erasing its uptrend off 1.3041. Note that the 50- and the 200-period SMA are also ready to complete a bearish cross, providing additional negative signals for the market direction.

The 50% Fibonacci of 1.3183 could react as resistance in case of an upward movement as it did in previous sessions. If not and the market closes decisively above that level, the next target could be the 38.2% Fibonacci of 1.3215. Crawling higher, the bulls would try to return above the Ichimoku cloud which currently lays around the 1.3238 level and run towards the previous peaks near the 23.6% Fibonacci of 1.3259.

Failure to hold above 1.3150 could see the market testing the 1.3100 region, with support likely coming near the 1.3232 restrictive mark, the November trough of 1.3114, and then around the 1.3100 round-level.

In brief, USDCAD is searching for a rebound, though negative trend signals seem to be strengthening, reducing optimism for a meaningful rally.

USDCAD

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

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD extends losses toward 1.1250 amid coronavirus concerns

EUR/USD is trading closer to 1.1250 as concerns about US coronavirus cases are growing. Eurozone finance ministers are meeting ahead of next week's summit.  US PPI and updated COVID-19 statistics are awaited.

EUR/USD News

GBP/USD pressured under 1.26 amid risk-off mood, Brexit uncertainty

GBP/USD is trading below 1.26, off the highs. Rising US coronavirus cases are pushing markets lower and the safe-haven dollar higher. Concerns about Brexit and the UK refusal to participate in the EU coronavirus vaccine scheme are weighing on sterling. 

GBP/USD News

Gold refreshes session tops, moves back above $1800 mark

The prevalent risk-off mood assisted gold to reverse an early dip to the $1796 region. A modest pickup in the USD demand might cap any further gains for the commodity. Investors also worried about the possibility of further escalation of Sino-US tensions.

Gold News

Canada Net Change in Employment June Preview: June is looking better and better

Job gains expected to more than double in June. Unemployment rate to drop to 12% from 13.7 in May. Ivey PMI was twice its forecast in June, highest since Nov 2019. USD/CAD would benefit from better June job figures.

Read more

WTI drops to fresh weekly lows below $39 amid virus risks, IEA forecast

WTI (August futures on Nymex) extends the steep declines seen on Thursday to drops over 1.50% in the European session this Friday. The oil bears breach the 39 level to hit the lowest levels in eight days at 38.76.

Oil News

Forex Majors

Cryptocurrencies

Signatures