USD/CAD Price Analysis: Extends pullback towards 1.2900 inside rising wedge

USD/CAD remains pressured inside a bearish chart pattern after stepping back from yearly top.
RSI retreat, MACD conditions suggest further downside but 1.2690 becomes a tough nut to crack for bears.
Bulls need to cross 1.2975 to keep the reins.

Anil Panchal FXStreet

USD/CAD drops towards 1.2900, extending the previous day’s pullback from the yearly top, during Wednesday’s Asian session. In doing so, the Loonie pair post the second consecutive daily loss while staying inside a bearish chart pattern called a rising wedge.

Given the recently flashed bearish MACD signal and RSI retreat from the overbought zone, USD/CAD declines are likely to stretch longer.

While the 1.2900 may entertain intraday sellers, a downside break of the stated wedge’s support line near 1.2840, will open the door for the USD/CAD downturn towards the mid-November lows near 1.2490.

However, a convergence of the 200-SMA and a five-week-old support line, near 1.2690, is strong support to break for keeping the USD/CAD bears in the driver’s seat after 1.2840.

Alternatively, recovery moves remain elusive until staying below the wedge’s resistance line near 1.2975.

Even so, the 1.30000 psychological magnet will be crucial before USD/CAD bulls eye the November 2020 peak of 1.3172.

USD/CAD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2915
Today Daily Change	-0.0025
Today Daily Change %	-0.19%
Today daily open	1.294

Trends
Daily SMA20	1.277
Daily SMA50	1.2579
Daily SMA100	1.2603
Daily SMA200	1.2486

Levels
Previous Daily High	1.2964
Previous Daily Low	1.2881
Previous Weekly High	1.2937
Previous Weekly Low	1.2706
Previous Monthly High	1.2837
Previous Monthly Low	1.2352
Daily Fibonacci 38.2%	1.2933
Daily Fibonacci 61.8%	1.2913
Daily Pivot Point S1	1.2893
Daily Pivot Point S2	1.2846
Daily Pivot Point S3	1.281
Daily Pivot Point R1	1.2975
Daily Pivot Point R2	1.3011
Daily Pivot Point R3	1.3058

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.