- 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: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by 50 bps.
EUR/USD still targets the 2024 peaks around 1.1200
EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
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.