USD/CAD Price Analysis: Bulls keep an eye on 1.2400 mark


  • USD/CAD posts some gains after the previous day's steep fall.
  • Bulls are facing stiff resistance near the 1.2490 mark.
  • Overbought MACD looks exhaustive, warns against aggressive bids.

USD/CAD edges higher in the Asian trading hours The pair rose near to the multi-month high on Monday, however,  failed to sustain the gains.

At the time of writing, USD/CAD trades at 1.2375, up 0.12% for the day.

USD/CAD 4-hour chart

On the 4-hour chart, after testing the daily high near the 1.2490 level, USD/CAD fell sharply and took shelter at 38.2% Fibonacci retracement, which extends from the lows of 1.2157. The pair now consolidates near the 1.2370 level.

 USD/CAD bulls making an effort to dominate the trade over here. The formation of three small Doji candlesticks suggests traders are reluctant to place aggressive selling bids at this level.

In doing so, the USD/CAD pair would first attempt to touch the 23.6% Fibonacci retracement level at 1.2410 followed by the 1.2450 horizontal resistance level.

The  Moving Average Convergence Divergence (MACD) indicator trades in the overbought zone signaling stretched buying opportunities. Any uptick in the MACD would continue to push USD/CAD higher to test the previous day’s high at 1.2487.

Alternatively, if price moves and sustains below the session’s low, then the bears could come back in action. The first target on the bear's radar would be the 50% Fibonacci retracement level at 1.2325.

Market participants would then aim for the 1.2270 and the 1.2220 horizontal support levels.

USD/CAD additional levels

USD/CAD

Overview
Today last price 1.2376
Today Daily Change 0.0015
Today Daily Change % 0.12
Today daily open 1.2361
 
Trends
Daily SMA20 1.2152
Daily SMA50 1.2233
Daily SMA100 1.2424
Daily SMA200 1.2708
 
Levels
Previous Daily High 1.2487
Previous Daily Low 1.2353
Previous Weekly High 1.2481
Previous Weekly Low 1.2128
Previous Monthly High 1.2352
Previous Monthly Low 1.2013
Daily Fibonacci 38.2% 1.2404
Daily Fibonacci 61.8% 1.2436
Daily Pivot Point S1 1.2314
Daily Pivot Point S2 1.2267
Daily Pivot Point S3 1.218
Daily Pivot Point R1 1.2447
Daily Pivot Point R2 1.2534
Daily Pivot Point R3 1.2581

 


 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hovers below 1.19 on mixed market mood

EUR/USD is trading below 1.19 but above the daily low as markets are lifting their heads from Monday's concerns about slower growth following the disappointing ISM Manufacturing PMI. US Treasury yields are off their lows and covid headlines are eyed.

EUR/USD News

GBP/USD clings to 1.39 as UK covid cases fall

GBP/USD is trading around 1.39, marginally higher, as UK covid cases extend their drop toward 20,000. The broader market mood is also calmer despite growth worries. 

GBP/USD News

XAU/USD continues to target $1804 and $1800 support levels

Gold is holding the lower ground, heading closer towards $1800, as traders remain cautious and refrain from placing any fresh directional bets ahead of the all-important US NFP data due this Friday.

Gold News

Bitcoin and altcoins correct before another run-up

Bitcoin price has dropped 10% since its August 1 swing high at $42,599. Ethereum price follows BTC and has shed 9% as it bounces off the $2,460 support level. Ripple price came extremely close to retesting the range high at $0.785 but is now undergoing correction.

Read more

Delta Doom is set to storm America, the dollar could emerge as top dog

"America is coming back" – these words by US President Joe Biden have sounded like a victory lap for the country's success in depressing COVID-19 cases, hospitalizations, and especially deaths. The charts are indeed impressive:

Read more

Forex MAJORS

Cryptocurrencies

Signatures