USD/CAD Price Analysis: Bulls seeking a break of 1.2790/00

USD/CAD bulls are lurking and the US dollar is firmer.
Bulls need to commit to a break of 1.2780 and then 1.2790/00.

Ross J Burland FXStreet

As per the prior analysis, USD/CAD Price Analysis: Bulls could be about to clean up, the price is in a phase of accumulation currently and a resurgence in the greenback would be expected to see USD/CAD rally in due course.

The following is an update of the prior analysis.

USD/CAD daily chart, prior analysis

The price extended a touch lower on Thursday, but the bullish thesis remains in play, as per the following hourly and 15-minute charts:

USD/CAD 15-min chart, live market

The price has been moving sideways within a consolidation price discovery phase of accumulation. This was flagged as a possibility in the prior analysis:

''From a 15-min perspective, the price action could develop over the coming sessions as follows. In a fast market, the price would be expected to correct steeply, but in a long drawn-out process in which there is a lack of commitment from the bulls, the ride could be a bumpy one along the support area as illustrated above. This would potentially result in an even lower low yet to come before the bulls fully commit to the correction in a phase of accumulation.''

The sentiment surrounding the greenback is turning more positive towards the end of the week so we could now start to see more commitment from the bulls over the coming sessions:

A break of 1.2780 and then 1.2790/00 will be key.

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.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.