USD/CAD Price Analysis: Bulls moving in on the strong bearish move

USD/CAD is on the move to the downside, bears look to 1.2600.
A correction to the upside could be on the cards for the start of the year.

Ross J Burland FXStreet

USD/CAD fell below a critical support zone during the holiday thin markets which leave a bearish bias on the charts. However, there are prospects of a bullish correction and the following illustrates the prospects for price action in the opening sessions of the week.

USD/CAD daily chart

USD/CAD has broken the trendline support and is due for a correction. However, that is not to say that the price can not continue lower before a meaningful correction occurs. 1.26 the figure could be tested in the opening sessions of this week.

USD/CAD H1 chart

From an hourly perspective, the price has already started to correct, although there is more to go until the correction might be significant enough before sellers may become interested to enter or reenter and target the 1.26 figure or lower. 1.2660 on the flip side is a compelling level that meets the 38.2% Fibo.

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.