- USD/CAD bears are moving in and eye a run to last week's lows.
- The current 15-min chart's M-formation could be key in this regard.
USD/CAD bears are back in the driver's seat as the market is a wash with US dollar longs that are being squeezed despite the red-hot US inflation data on Thursday. A resurgence in the oil price is also benefitting the loonie in late afternoon trade on Wall Street which has flipped risk-on. The following is a top-down analysis that arrives at a bearish thesis for the days ahead while below last week's highs of near 1.3850.
USD/CAD weekly chart
The price has reached a weekly resistance area and a correction could be on the cards for the meantime before the next move up.
USDCAD daily chart
The daily chart is also encouraging bears to the table, having spiked and pinned out on the day so far. The bears, however, need to get below the horizontal and trendline support around 1.3680.
USD/CAD H1 chart
The hourly chart shows the price at the upper end of a box. Therefore, the path of least resistance is to the downside at this juncture with the market having peaked out on Thursday's CPI rally. The highs and lows of the significant days are plotted on the chart and the break of Friday 7 low will be a significant development.
USD/CAD M15 chart
The price has carved out a 15-minute M-formation and should the price hold below it on a restest, followed preferably by a bearish engulfment of the current bullish correction, then the bears will be on track for further downside before the week is out.
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD rises toward 1.0800 as USD weakens
EUR/USD has gained traction and advanced toward 1.0800 in the early American session on Monday. The positive opening witnessed in Wall Street makes it difficult for the US Dollar to find demand and helps the pair continue to push higher.
GBP/USD closes in on 1.2300 as mood improves
GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.
Gold: XAU/USD pared losses and consolidates around $1,950.00 Premium
Spot gold trades in the $1,950 price zone, sharply down on Monday as investors move away from safe-haven assets. The sentiment is positive at the start of the week amid easing concerns related to a global banking crisis.
MicroStrategy buys $150 million worth of Bitcoin as institutional interest soars to eight-month high
Bitcoin has been noting increasing institutional interest for the last few days as whale movement on the network grew.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.