- USD/CAD extends pullback from one-week low inside short-term falling wedge.
- Weekly resistance line, 200-hour EMA offers an immediate challenge to the bulls.
- Sellers can have multiple rest-points before the monthly low.
USD/CAD rises to 1.3095 during the early Thursday’s trading in Asia. In doing so, the pair confronts a joint of 200-hour EMA and a falling trend line from November 13, forming part of a short-term falling wedge.
Although bullish MACD favors the pair’s strength, the key resistance confluence, followed by the 1.3100 threshold, can challenge the USD/CAD buyers.
Should the quote crosses 1.3100 mark, the last Friday’s high of 1.3172 can offer an intermediate halt before propelling the quote towards the monthly peak surrounding 1.3370. Meanwhile, the mid-October top around 1.3260 can act as an intermediate halt.
Alternatively, 50% Fibonacci retracement of November 09-13 upside, near 1.3050 may act as immediate support to watch for the USD/CAD sellers ahead of the bullish pattern’s lower line, currently around 1.3030.
In a case where the bears dominate past-1.3030, the 61.8% Fibonacci retracement level near 1.3020 and the 1.3000 psychological magnet can probe further downside before highlighting the monthly bottom close to 1.2930.
USD/CAD hourly chart
Trend: Pullback expected
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.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0900 after US data
EUR/USD continues to trade in a relatively tight range below 1.0900 on Friday. The data from the US showed that the annual PCE inflation declined to 5% in December from 5.5% in November but failed to trigger a significant reaction. Investors await US Pending Home Sales data.
GBP/USD trades on the back foot below 1.2400
GBP/USD is having a difficult time gathering recovery momentum and trading in negative territory below 1.2400 on Friday. Although the data from the US showed that PCE inflation continued to soften in December, the US Dollar's losses remain limited.
Gold clings to small daily gains above $1,930
Gold price has managed to stage a rebound and climbed above $1,930 after having declined toward $1,920 earlier in the day. The benchmark 10-year US Treasury bond yield retreated modestly from daily highs after the latest US data, helping XAU/USD edge higher.
Is the dramatic rise in whale activity in AAVE, MATIC and DYDX a sell signal?
AAVE, MATIC and DYDX price rallied alongside large market capitalization cryptocurrencies Bitcoin and Ethereum in January. Experts at the crypto intelligence tracker Santiment believe the recent spike in activity by whales on these networks needs to be watched closely.
Breaking: US annual Core PCE inflation declines to 4.4% in December as expected
Inflation in the US, as measured by the Personal Consumption Expenditures (PCE) Price Index, declined to 5% on a yearly basis in December from 5.5% in November, the US Bureau of Economic Analysis reported on Friday.