• USD/CAD bears could be about to move in from weekly resistance.
  • The daily chart's harmonic pattern is bearish.

USD/CAD is reaching into a key resistance area and a correction could be imminent on the longer term charts as the following analysis will illustrate across the weelkly and daily charts.

USD/CAD weekly chart

The price has run into a weekly chart's resistance area and while there is every possibility that the rally will continue, the following will draw the bear's attention:

USD/CAD daily chart

The harmonic pattern is bearish and the price that is meeting resistance would be anticipated to turn lower in a correction that could see a 50% mean reversion play out that has a confluence with the prior resistance of November 2020.

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD struggles below 0.6700 with eyes on Australia inflation, China PMI and Fed’s Powell

AUD/USD struggles below 0.6700 with eyes on Australia inflation, China PMI and Fed’s Powell

AUD/USD portrays the typical pre-data anxiety as it seesaws near 0.6685-90 during the early hours of Wednesday’s Asian session. In doing so, the Aussie pair fails to cheer the risk-positive headlines from Australia’s major customer China amid the recently firmer US Dollar.

AUDUSD News

EUR/USD closing in most bullish month in 12 years ahead of Eurozone inflation, Federal Reserve talk

EUR/USD closing in most bullish month in 12 years ahead of Eurozone inflation, Federal Reserve talk

EUR/USD remains pressured around 1.0330, after printing a two-day downtrend, as it prepares for the big day during early Wednesday in Asia. The major currency pair stays on the way to posting the biggest monthly run-up in 12 years.

EUR/USD News

Gold traders await the Federal Reserve Chair Jerome Powell

Gold traders await the Federal Reserve Chair Jerome Powell

Gold prices climbed on Tuesday even as the US Dollar and bond yields rose but were capped as traders get set for the Federal Reserve's chair, Jerome Powell, who will speak on Wednesday. China and the Coronavirus spread are keeping markets at bay. 

Gold News

Luna Classic: 10% drop then a market reversal

Luna Classic: 10% drop then a market reversal

Terra's Luna Classic price has been trading range bound for over a week. The consolidating range has produced higher highs and higher lows following each change of trend. If the technicals are correct, LUNC could be setting up for one more 10% decline before a market reversal occurs.

Read more

Stock markets recovered from China uncertainty, Fed's Powell next

Stock markets recovered from China uncertainty, Fed's Powell next

S&P 500 recovered from China uncertainty, keeping right below 4,000 until Williams and Bullard reiterated sticky inflation and high rates views. Reiterated – not brought fresh and unexpected information. Still, stocks and much of the rest declined sharply.

Read more

Forex MAJORS

Cryptocurrencies

Signatures