USD/CAD Price Analysis: Defends key $1.2660 support ahead of US data, Powell


  • 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.

USD/CAD is making minor recovery attempts around the 1.2675 region, as the bulls yearn to regain the 1.2700 level ahead of the key US jobs data and Powell’s speech.

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

USD/CAD

Overview
Today last price 1.2674
Today Daily Change -0.0027
Today Daily Change % -0.21
Today daily open 1.27
 
Trends
Daily SMA20 1.277
Daily SMA50 1.2881
Daily SMA100 1.3044
Daily SMA200 1.3347
 
Levels
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

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures