USD/CAD Price Analysis: Bears ready to pounce depending on the Fed

USD/CAD bears chipped away at the 1.3305 structure before bulls moved in to test bears at the 1.3350s.
The Fed will determine when the price heads towards 1.3220s and then the 1.3150s or, on the upside, we have 1.3380s that guard the 1.3450/80s.

Ross J Burland FXStreet

As per the prior analysis, USD/CAD Price Analysis: Bears seek a break of key support while on the front side of bear trend, bulls have moved in to test the critical resistance area near the 1.3350s ahead of the Federal Reserve's interest rate decision.

For the US Dollar, this event will be important and it could catch a bid if the outcome is far more hawkish than what would be otherwise anticipated. A pushback against the sentiment of a pivot could stir up some demand for the greenback which sees a higher USD/CAD but anything to the contrary would likely see 1.3300 come under pressure with the price already jammed in on the front side of the bearish trendline following a failed breakout.

USD/CAD, prior analysis daily charts

Zoomed in ...

It was stated, that with the breakout failure, the bears remained in control.

USD/CAD H1 chart

However, in the Asian session, when the analysis was drawn on the above charts, it was also explained that the bulls could be seeking a move to test the commitments of the bears again following the failed breakout with the 50% mean reversion resistance eyed.

USD/CAD update

The bulls moved in as anticipated and now the price will be determined by the Federal Reserve event. In this regard, we have the levels marked as follows:

We have already seen the bears chip away at the 1.3305 structure, and this is technically already broken, exposing the 1.3220s and then the 1.3150s. On the upside, we have 1.3380s that guard the 1.3450/80s.

Author

Ross J Burland

FXStreet

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.

EUR/USD trims losses, back to 1.1830

EUR/USD manages to regain some composure, leaving behind part of the earlier losses and reclaim the 1.1830 region on Tuesday. In the meantime, the US Dollar’s upside impulse loses some momentum while investors remain cautious ahead of upcoming US data releases, including the FOMC Minutes.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.