- USD/CAD consolidates recent losses near the week’s low.
- Bullish MACD suggests another attempt to cross seven-week-old resistance line.
- 50-day SMA adds to the upside filter, bears have bumpy road below 1.2700.
USD/CAD rises to 1.2700 during Wednesday’s Asian session. In doing so, the loonie pair takes a U-turn from the week’s bottom. However, the quote stays below a downward sloping trend line from November 11 while maintaining its pullback marked the previous day.
With the MACD signals flashing green light, USD/CAD is likely to again confront an 11-week-old resistance line, at 1.2737 now. Though, a 50-day SMA near 1.2805 adds to the upside filters.
Should the USD/CAD prices rise beyond 1.2805, the monthly high of 1.2835 and the late December top surrounding 1.2835-40 will be in the spotlight afterward.
Meanwhile, a horizontal area comprising multiple lows marked since January 06, between 1.2625-30, will act as immediate support during the USD/CAD pair’s fresh downside.
Also acting as the key support will be the monthly low of 1.2589 as well as the April 2018 low near 1.2525.
USD/CAD daily chart
Trend: Further recovery expected
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.
Latest Forex News
Editors’ Picks
EUR/USD extends losses below 1.21 amid sour market mood
EUR/USD has extended its falls under 1.21 as the risk-off mood and elevated US bond yields favor the dollar. The EU is pressing to accelerate its vaccination campaign. President Biden's stimulus bill ran into a snag. The Fed's preferred inflation measure and end-of-month flows are eyed.
GBP/USD tumbles below 1.39 as the dollar storms the board
GBP/USD has fallen sharply, trading below 1.39 and down some 350 pips from the highs. The US dollar picks up bids as the bond market rout seems to resume. BOE Governor Bailey expects a negative first quarter for the economy.
XAU/USD bounces off multi-month lows, keeps the red below $1765 level
Gold witnessed some follow-through selling for the second consecutive session on Friday. Oversold RSI on the 1-hourly charts assisted the commodity to bounce off eight-month lows. Bearish oscillators on 4-hourly/daily charts support prospects for a further near-term decline.
Dogecoin bullish failure could cause a 20%-to-40% correction
Dogecoin price has dipped under support at $0.055, opening up the possibility of a steeper correction. Transactional data shows investors who purchased 20.70 billion DOGE from $0.050 to $0.055 are underwater.
US Dollar Index climbs to session tops near 90.50, looks to data
The greenback, when measured by the US Dollar Index (DXY), regains composure and reclaims the 90.00 barrier and (well) above at the end of the week.