USD/CAD feeling tired again near 38.2% fib resistance

Omkar Godbole FXStreet Contributor

The USD/CAD pair is looking tired as it trades just a few pips short of 1.3209, which is 38.2% Fibonacci retracement of the Trump rally.

A look at the daily chart tells us that the spot has failed twice – Feb 7 & Feb 22 – this month at 1.309 levels. What’s worth noting is that even the 50-DMA is now positioned at 1.3209 levels.

CAD under pressure despite range bound oil prices

Monday’s rally in the USD/CAD pair from 1.3083 to 1.3181 contradicts the range bound action in the oil prices. Moreover, oil benchmarks have been restricted to a narrow range amid the tug of war between OPEC and US Shale.

The focus today is on the Trump speech to congress. Trump trade is at a risk of fizzling out if POTUS keeps mum on the details of the fiscal policy. However, CAD may under perform as unwinding of the Trump trade could also weigh over oil and other commodity prices.

USD/CAD Technical Levels

The spot was last seen trading around 1.3185. A break above 1.3209 (38.2% fib + 50-DMA) would expose 1.3236 (Dec 5 low) and 1.3272 (100-DMA). On the other hand, a breakdown of support at 1.3175 (session low) could yield a sell-off to 1.3144 (5-DMA + 200-DMA), under which a major support is seen at 1.3083 (Monday’s low).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	Expanding
1H	Bullish	Neutral	Shrinking
4H	Bullish	Neutral	Expanding
1D	Bearish	Neutral	Low
1W	Bearish	Neutral	High
Updated Feb 23, 22:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD gains traction to near 1.1800 as tariff uncertainty weighs on US Dollar

The EUR/USD pair holds positive ground around 1.1795 during the early Asian session on Tuesday. The US Dollar weakens against the Euro amid US tariff uncertainty. The release of the US January Producer Price Index report will be in the spotlight later on Friday.

GBP/USD treads water near 1.3500 as BoE-Fed divergence debate stalls

GBP/USD spent Monday spinning in place as market participants await a fresh catalyst to break the pair out of its recent range. The BoE's February hold came with a surprisingly dovish 5-4 split, and UK Consumer Price Index data last week showed inflation easing to 3.0%, reinforcing the case for earlier rate cuts, with most economists now looking to April or March for the next move.

Gold down but not out as key $5,140 support holds

Gold consolidates the advance to monthly top of $5,250 in Tuesday’s Asian trades. The US Dollar finds demand as liquidity returns and risk sentiment recovers, despite US tariffs uncertainty. Gold defends 61.8% Fibo resistance at $5,142 amid the pullback, daily RSI remains bullish.

Top Crypto Losers: BCH, HYPE, PUMP extend losses as Bitcoin drops below $64,000

Altcoins, including Bitcoin Cash, Hyperliquid, and Pump.fun, are leading losses over the last 24 hours as Bitcoin falls below $64,000 on Tuesday. The technical outlook for BCH, HYPE, and PUMP flags downside risk amid broader market selling.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.