USDCAD – triple Doji signals strong indecision but bias remains negative

Slobodan Drvenica Windsor Brokers

USDCAD

The pair remains in directionless mode on Thursday and forming the third straight Doji. Strong indecision signal was generated after Wednesday’s action ended in Doji candle with very long legs.
Overall structure is bearish and keeps focus shifted lower.
Key near-term support at 1.2355 (05 Jan low) is eyed for retest after the price spiked to 1.2360 low on Wednesday, but initial requirement is close below cracked 1.2389 support (Fibo 61.8% of 1.2061/1.2920 ascend) which would signal continuation of larger downtrend from 1.2920 (19 Dec peak).
Sustained break below 1.2355 pivot would signal bearish continuation and expose nect target at 1.2263 (Fibo 76.4% of 1.2061/1.2920).
Falling 10SMA continues to cap despite being cracked on Wednesday’s spike to 1.2536 and marks initial resistance at 1.2456.
Extended upticks should hold below descending 20SMA (1.2543) to keep near-term bearish bias intact.

Res: 1.2456; 1.2500; 1.2543; 1.2570
Sup: 1.2427; 1.2396; 1.2355; 1.2300

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold declines as trading volumes remain subdued due to holidays in China

Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.

Top Crypto Gainers: Stable, MemeCore and Nexo rally test critical resistance levels

Stable, MemeCore, and Nexo are among the leading gainers in the crypto market over the last 24 hours, while Bitcoin remains below $70,000, suggesting renewed interest in altcoins among investors.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.