USD/CAD Price Analysis: A slippage below 1.3650 to activate double top formation

USD/CAD has managed to defend 1.3560 for the time being amid a recovery in the USD Index.
Canada’s quarterly GDP expanded by 0.8% against 0.4% as estimated and a stagnant performance was reported earlier.
USD/CAD has formed a Double Top pattern which will be triggered after a confident breakdown of 1.3568.

Sagar Dua FXStreet

The USD/CAD pair has managed to defend its downside near 1.3560 in the Tokyo session. The Loonie asset has got some strength propelled by a recovery in the US Dollar Index (DXY). The USD Index has shown a solid recovery after correcting to near 104.13 on hopes that the Federal Reserve (Fed) will push interest rates further in June.

The Canadian Dollar got some strength on Thursday after the release of upbeat Q1 Gross Domestic Product (GDP) numbers. Quarterly GDP expanded by 0.8% against 0.4% as estimated and a stagnant performance was reported in the prior quarter.

While monthly GDP (March) remained stagnant but managed to avoid contraction as expected by the market participants. The content is insufficient to force the Bank of Canada (BoC) to continue hiking interest rates again.

USD/CAD has formed a Double Top chart pattern on an hourly scale, which indicates a bearish reversal due to an absence of buying interest near critical resistance plotted from May 26 high at 1.3665. A confident breakdown of the trigger support around 1.3568 will activate the Double Top formation. Potential support is placed from May 22 low at 1.3485.

Downward-sloping 20-period Exponential Moving Average (EMA) at 1.3592 indicates that the short-term trend is bearish.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-40.00, which advocates more weakness ahead.

Going forward, a break below the intraday low at 1.3563 will drag the asset toward May 17 high at 1.3536. A breakdown below the latter will expose the Loonie asset to May 22 low at 1.3485.

On the contrary, a fresh buy would come above May 26 high at 1.3655, which would drive the asset toward the round-level resistance at 1.3700 followed by March 27 high at 1.3745.

USD/CAD hourly chart

USD/CAD

Overview
Today last price	1.3574
Today Daily Change	0.0000
Today Daily Change %	-0.00
Today daily open	1.3574

Trends
Daily SMA20	1.3507
Daily SMA50	1.3518
Daily SMA100	1.3517
Daily SMA200	1.3502

Levels
Previous Daily High	1.3651
Previous Daily Low	1.3569
Previous Weekly High	1.3655
Previous Weekly Low	1.3485
Previous Monthly High	1.3655
Previous Monthly Low	1.3315
Daily Fibonacci 38.2%	1.3601
Daily Fibonacci 61.8%	1.362
Daily Pivot Point S1	1.3545
Daily Pivot Point S2	1.3516
Daily Pivot Point S3	1.3464
Daily Pivot Point R1	1.3627
Daily Pivot Point R2	1.368
Daily Pivot Point R3	1.3709

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD extends decline to fresh monthly lows below 0.7100

AUD/USD trades south of 0.7100 early in the Asian session on Thursday, as the US Dollar soared following the Federal Reserve's monetary policy announcement. The Fed delivered a 25 bps rate hike as expected, while policymakers expressed concerns about inflation leading to bets of additional hikes before year-end.

USD/JPY flirts with 156.00 after Fed's hawkish hike

USD/JPY trades at fresh weekly highs around 156.00 early on Thursday, as the US Dollar soared following the Federal Reserve's monetary policy announcement. The US central bank hiked the benchmark rate by 25 bps as expected, while Chair Kevin Warsh delivered quite hawkish comments in the press conference that followed the decision.

Gold dips towards $4,250 in the Fed's aftermath

Gold erased intraday gains and turned negative following the Federal Reserve's decision to hike rates by 25 bps as expected. The XAU/USD pair briefly surpassed the $4,360 level, now accelerating its slide towards the $4,250 price zone. Hawkish words from Chair Kevin Warsh fueled bets for additional hikes before year-end.

Fed raises 2026 interest rate forecast to 4.1%, lifts PCE inflation projections

The Federal Reserve's (Fed) latest dot plot projections, released by the Federal Open Market Committee (FOMC) on Wednesday, show policymakers now expect interest rates to stand at 4.1% by the end of 2026, up from 3.8% in June.

Fed recap: One hike down, more to come? The Fed’s new rate path says yes

The Federal Reserve (Fed) raised its Fed Fund Target Range (FFTR) range by 25 basis points to 3.75%-4.00% in a unanimous decision, saying the move would support a timelier return to its 2% inflation goal.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.