- 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
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold consolidates near record high, bullish potential seems intact
Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.