- USD/CAD rebounds from ahead of key 1.2660 support.
- Death cross suggests risks remain to the downside.
- RSI on hourly chart sees an uptick but remains bearish.
Despite the bounce, the bears are likely to retain control amid a bearish technical setup seen on the hourly chart.
The spot has confirmed a death cross formation on the given timeframe. A death cross is a bearish crossover and it occurs when the 50-simple moving average (SMA) crosses the 200-SMA from above.
The Relative Strength Index (RSI) has bounced-off lows but remains well below the midline, at 35.55, suggesting that the downside remains more compelling.
The recovery in USD/CAD is likely to meet strong offers at 1.2696, where the bearish 21-SMA aligns.
Recapturing the latter is critical to unleashing further recovery gains, with eyes set on the 1.2717 level. At this point, the 50 and 200-SMAs coincide.
On the flip side, a breach of the four-day-old falling trendline support at 1.2660 could trigger a sharp sell-off, opening floors for a test of the January 6 low at 1.2630.
USD/CAD: Hourly chart
USD/CAD: Additional levels
|Today last price||1.2674|
|Today Daily Change||-0.0027|
|Today Daily Change %||-0.21|
|Today daily open||1.27|
|Previous Daily High||1.2747|
|Previous Daily Low||1.268|
|Previous Weekly High||1.2798|
|Previous Weekly Low||1.263|
|Previous Monthly High||1.301|
|Previous Monthly Low||1.2688|
|Daily Fibonacci 38.2%||1.2706|
|Daily Fibonacci 61.8%||1.2722|
|Daily Pivot Point S1||1.2671|
|Daily Pivot Point S2||1.2643|
|Daily Pivot Point S3||1.2605|
|Daily Pivot Point R1||1.2738|
|Daily Pivot Point R2||1.2776|
|Daily Pivot Point R3||1.2804|
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