USD/CAD Price Analysis: Eyes further losses near 1.2700, US/Canada employment data in focus


Share:
  • USD/CAD drops for the second consecutive day while staying on course to snap two-week downtrend.
  • Seven-week-old support, 100-DMA lures bears ahead of December jobs report.
  • 21-DMA guards immediate upside, monthly horizontal line adds to the resistances.

USD/CAD remains on the back foot for the second day in a row as sellers attack 1.2700, down 0.13% intraday heading into Friday’s European session.

In doing so, the Loonie pair extends the previous day’s U-turn from 21-DMA amid bearish MACD signals as traders await key employment data from Canada and the US for December.

Read: USD/CAD bears remain on top desite hawkish Fed, oil prices and BoC support CAD

That said, 38.2% Fibonacci retracement (Fibo.) of October-December upside, near 1.2700 threshold, restricts immediate declines of the USD/CAD prices ahead of an ascending support line from November 19, near 1.2645 at the latest.

It should be noted, however, that the pair’s downside break of 1.2645 will need to conquer the 1.2630-25 support confluence, including the 100-DMA and 50% Fibo., to keep the bears on the driver’s seat.

Alternatively, strong resistance of the monthly horizontal line, around 1.2845, adds to the upside filters even if the USD/CAD prices manage to cross the immediate hurdle of the 21-DMA near 1.2795.

If at all the quote stays above 1.2845, odds of the pair’s rally towards 1.2900 and December’s peak of 1.2964 can’t be ruled out.

USD/CAD: Daily chart

Trend: Further declines expected

Additional important levels

Overview
Today last price 1.271
Today Daily Change -0.0017
Today Daily Change % -0.13%
Today daily open 1.2727
 
Trends
Daily SMA20 1.2799
Daily SMA50 1.2683
Daily SMA100 1.263
Daily SMA200 1.2502
 
Levels
Previous Daily High 1.2814
Previous Daily Low 1.2707
Previous Weekly High 1.2848
Previous Weekly Low 1.262
Previous Monthly High 1.2964
Previous Monthly Low 1.2608
Daily Fibonacci 38.2% 1.2748
Daily Fibonacci 61.8% 1.2773
Daily Pivot Point S1 1.2685
Daily Pivot Point S2 1.2642
Daily Pivot Point S3 1.2578
Daily Pivot Point R1 1.2792
Daily Pivot Point R2 1.2856
Daily Pivot Point R3 1.2899

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD grinds above 0.6860 key support on softer Aussie trade surplus, RBA, Fed’s Powell eyed

AUD/USD grinds above 0.6860 key support on softer Aussie trade surplus, RBA, Fed’s Powell eyed

AUD/USD remains sidelined around the intraday high near 0.6890, portraying the typical pre-data anxiety, as the Aussie pair traders await the Reserve Bank of Australia’s (RBA) monetary policy meeting announcements on early Tuesday. 

AUD/USD News

USD/JPY tumbles toward 132.00 after Japan confirms 'stealth intervention'

USD/JPY tumbles toward 132.00 after Japan confirms 'stealth intervention'

USD/JPY is sinking toward 132.00 in the Tokyo open as Japan's Finance Ministry confirmed a  stealth intervention in the forex market. The BoJ conducted an intervention in the yen on instructions from the Finance Ministry. Focus shifts to Fed's Powell. 

USD/JPY News

Will Gold breach $1,850 on Fed Chair Powell’s speech? Premium

Will Gold breach $1,850 on Fed Chair Powell’s speech?

Gold price is looking to build on the previous recovery gains this Tuesday, as the United States Dollar retreats further from four-week highs against its major peers. Risk sentiment remains in a better spot after setting off the week on a tepid note.

Gold News

Will Binance Coin price face a drawdown as Binance suspends USD bank transfers from February 8?

Will Binance Coin price face a drawdown as Binance suspends USD bank transfers from February 8?

Binance is the biggest cryptocurrency exchange in the world. It also emerged as a key player in the crypto industry owing to its initiatives following the FTX collapse in November 2022.

Read more

Reserve Bank of Australia Preview: No choice but to keep hiking rates Premium

Reserve Bank of Australia Preview: No choice but to keep hiking rates

The Reserve Bank of Australia (RBA) will announce its monetary policy decision on February 7, with the Board expected to pull the trigger by another 25 basis points (bps). 

Read more

Forex MAJORS

Cryptocurrencies

Signatures