USD/CAD Price Analysis: Bears run into support but eye a continuation towards 1.3450

USD/CAD bulls eye a move towards neckline resistance.
Bears seek a continuation and break of support to open 1.3450.

Ross J Burland FXStreet

The Canadian Dollar strengthened to its highest level in nearly four weeks against the Greenback on Wednesday as a recovery in risk appetite supported the currency. However, there are prospects of a correction at this juncture as the following technical analysis illustrates.

USD/CAD weekly chart

As seen, USD/CAD is meeting a support area and leaving behind an M-formation which is a reversion pattern and would be expected to see the price return to the neckline for a retest in due course. The ultimate objective is a retest of the trendline support that meets horizontal support near 1.3250 in the long term.

USD/CAD daily chart

This would see the daily chart´s price action correct up and into the Fibonacci scale. The 38.2% Fibonacci aligns with the nose of the neckline near 1.3650. However, should the beares move in again, then the focus will be on 1.3450 in the medium term.

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 gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.