- USD/CAD fails to capitalize the previous session’s gains on Wednesday.
- Bulls face stiff resistance near the 1.2580-1.2620 zone.
- Momentum oscillator holds onto the oversold zone with negative bias.
USD/CAD accumulates losses on Wednesday in the European trading session. The pair opened higher, however, not able to preserve the momentum and retreated towards the lower level.
At the time of writing, USD/CAD is trading at 1.2580, down 0.17% for the day.
USD/CAD daily chart
-637630519702473633.png)
On the daily chart, the USD/CAD pair has been taking strong support near the 1.2550 level with multiple bottom formations.
If price remains below the session low, it could test the previous day’s low at 1.2538 as the first downside target.
The Moving Average Convergence Divergence (MACD) indicator holds over the oversold with bearish crossover. Any downtick in the MACD could intensify the selling pressure toward the 1.2500 horizontal support level.
Next, the USD/CAD bears would aim for the 50% Fibonacci retracement, which extends from the low of 1.2129, at 1.2477.
Alternatively, if price moves higher then it could be to the 23.6% Fibonacci retracement at 1.2650.
A daily close above the mentioned level would prompt bulls to continue with the prevailing upside momentum.
The next area of support for the market participant would be the 1.2700 horizontal resistance level followed by the high of July 21 at 1.2730.
USD/CAD additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD loses ground due to the absence of a hawkish RBA
The Australian Dollar has plunged following the Reserve Bank of Australia's decision to maintain its interest rate at 4.35% on Tuesday. Investors sentiment leaned toward a potentially more hawkish stance from the RBA, particularly after last week's inflation data surpassed expectations.
EUR/USD edges lower to near 1.0750 after hawkish remarks from a Fed official
EUR/USD extends its losses for the second successive session, trading around 1.0750 during the Asian session on Wednesday. The US Dollar gains ground due to the expectations of the Federal Reserve’s prolonging higher interest rates.
Gold price remains on the defensive on a firmer US Dollar
Gold price attracts some sellers on the firmer US Dollar during the Asian trading hours on Wednesday. The hawkish remarks from Federal Reserve officials dampen hopes for potential interest rate cuts in 2024 despite weaker-than-expected US employment reports in April.
FTX files consensus-based plan of reorganization, awaits bankruptcy court approval
FTX has filed a consensus-based plan for its reorganization, coming almost two years after the now defunct FTX filed for Chapter 11 Bankruptcy Protection in the District of Delaware.
Living vicariously through rate cut expectations
U.S. stock indexes made gains on Tuesday as concerns about an overheating U.S. economy ease, particularly with incoming economic reports showing data surprises at their most negative levels since February of last year.