- USD/CAD looks to extend the recent recovery rally beyond 1.36.
- Bull pennant breakout on hourly sticks, with bullish RSI.
- Canadian jobs, US PPI and coronavirus status to hog the limelight.
Meanwhile, the losses in the major could be capped by the 0.50% drop in WTI prices, which weighs on the resource-linked Loonie.
Further, the technical set-up on the hourly chart also suggests that the path of least resistance appears to the upside. The spot has charted a bullish pennant breakout following an hourly close above the falling trendline resistance at 1.3588.
The bullish formation calls for a test of the pattern target near 1.3650 should the Canadian jobs disappoint and or the US dollar continue to draw safe-haven bids.
The upside bias is backed by the hourly Relative Strength Index point upwards at 66.65, just below the overbought territory. The rally in the major picked up pace only after the price cut the 21-hourly Simple Moving Average (HMA) from below in Thursday’s NY trading.
To the downside, any pullbacks could be capped around 1.3580, where the 200-HMA and rising trendline support coincide.
A break below the latter could trigger a sharp drop towards 1.3555-50 region, the strong confluence of the 50, 100 and 21-HMAs.
USD/CAD hourly chart
USD/CAD additional levels
|Today last price||1.3590|
|Today Daily Change||0.0005|
|Today Daily Change %||0.04|
|Today daily open||1.3585|
|Previous Daily High||1.3594|
|Previous Daily Low||1.3491|
|Previous Weekly High||1.3705|
|Previous Weekly Low||1.3545|
|Previous Monthly High||1.3802|
|Previous Monthly Low||1.3316|
|Daily Fibonacci 38.2%||1.3555|
|Daily Fibonacci 61.8%||1.3531|
|Daily Pivot Point S1||1.3519|
|Daily Pivot Point S2||1.3454|
|Daily Pivot Point S3||1.3416|
|Daily Pivot Point R1||1.3623|
|Daily Pivot Point R2||1.366|
|Daily Pivot Point R3||1.3726|
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.