USD/CAD Price Analysis: Bull pennant breakout on 1H calls for further upside


  • 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.

USD/CAD is back under the 1.3600 level following an uptick seen in early trades, as the risk-off sentiment remains the key theme in Asia this Friday, keeping the US dollar broadly bid.

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

fxsoriginal

USD/CAD additional levels

USD/CAD

Overview
Today last price 1.3590
Today Daily Change 0.0005
Today Daily Change % 0.04
Today daily open 1.3585
 
Trends
Daily SMA20 1.3585
Daily SMA50 1.373
Daily SMA100 1.3824
Daily SMA200 1.3501
 
Levels
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

 

 

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