|

USD/CAD Price Analysis: Bears are holding the fort at key daily confluence area

  • USD/CA bears are on the verge of a move.
  • The daily chart's M-formation is a compelling feature on the charts. 

USD/CAD is on the verge of a move lower according to the daily market structure and so long as the recent highs continue to hold. The following illustrates the bearish bias from both a daily and hourly perspective. 

USD/CAD daily chart

The price has been testing the daily M-formation's neckline with a rejection near a 61.8% Fibonacci level which puts the bias into the hands of the bears to start the week. There is an area of imbalance to the downside that cold be mitigated in the forth coming days.

USD/CAD H1 chart

There is a bearish schematic playing out on the hourly chart with the M-formation's neckline vulnerable but resistance would be expected around there which could lead to a melt towards the daily imbalance as illustrated. 

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Editor's Picks

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis
 

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows. 

Gold falls to near $5,100 as inflation fears weigh amidst Middle East conflict

Gold price faces some selling pressure near $5,100 during the early Asian session on Wednesday. The precious metal falls amid a renewed US Dollar demand and dimming prospects for US rate cuts. The US ISM Services Purchasing Managers Index report will be published later on Wednesday. 

Ethereum: Whales step up buying as short positions contract

After holding firm heading into the last weekend, Ethereum whales have returned to action, pouncing on the volatility stemming from escalating military actions between the US and Iran.

Energy shock 2.0: Why rising Gas prices could hit the Euro

Even without a confirmed, sustained disruption, the mere risk to a key global energy chokepoint is enough to inject a significant premium into European Gas markets. And for the Euro, that matters.

Ripple falters amid sell-off jitters and negative funding rates

Ripple (XRP) has come under pressure, drifting lower to $1.35 at the time of writing on Tuesday. The over 2% correction looks poised to erase the previous day’s gains, which lifted the remittance token to $1.42.