USD/CAD heading for a technically weak close on the week – Scotiabank

FXStreet Insights Team FXStreet

USD/CAD remains below 1.3400. Economists at Scotiabank analyze the pair’s outlook.

A push back to 1.3290/1.3300 should follow in the next 1-2 weeks

Despite choppy price action since Wednesday, USD/CAD is still heading for a technically weak close on the week – below the 40-DMA (1.3398) retracement support (1.3403) and the noted 1.3540 double top trigger at 1.3415. The weekly candle chart also shows a likely bearish ‘engulfing’ line forming.

A push back to the 1.3290/1.3300 (double top measured move target) should follow in the next 1-2 weeks (or sooner).

Intraday support is 1.3350/1.3360. Resistance is 1.3390/1.3400.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.