USD/CAD Price Analysis: Flirts with 200-SMA after confirming rising wedge bearish pattern

  • USD/CAD consolidates recent losses despite confirming bearish chart formation.
  • Ascending support line from late June becomes the key, three-week-old horizontal area challenges buyers.
  • Downbeat Momentum line, rising wedge confirmation keep sellers hopeful.

USD/CAD refreshes intraday low to 1.2519, down 0.05% on a day, amid Friday’s Asian session. Even so, the Loonie pair seesaws around 200-SMA while raising doubts on the rising wedge confirmation, portrayed on Thursday.

In addition to lacking a clear downside below the 200-SMA level of 1.2515, an ascending support line from June 23, close to 1.2480, also challenges the pair sellers.

It should be noted that sustained trading below 1.2480 will not hesitate to challenge five-week-long horizontal support surrounding 1.2420.

Meanwhile, USD/CAD sellers remain hopeful unless the quote bounces back beyond 1.2545, defying the bearish pattern.

Even so, the formation’s upper line and a short-term horizontal resistance, respectively near 1.2600 and 1.2610, will be a strong hurdle for the bulls to retake controls.

Should the quote remains firmer past 1.2610, 1.2670 and 1.2730 will be important to watch ahead of the previous month’s top around 1.2810.

USD/CAD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Today last price 1.252
Today Daily Change 0.0015
Today Daily Change % 0.12%
Today daily open 1.2505
Daily SMA20 1.2558
Daily SMA50 1.2411
Daily SMA100 1.2371
Daily SMA200 1.257
Previous Daily High 1.2548
Previous Daily Low 1.2489
Previous Weekly High 1.2581
Previous Weekly Low 1.2453
Previous Monthly High 1.2808
Previous Monthly Low 1.2303
Daily Fibonacci 38.2% 1.2512
Daily Fibonacci 61.8% 1.2526
Daily Pivot Point S1 1.248
Daily Pivot Point S2 1.2455
Daily Pivot Point S3 1.2421
Daily Pivot Point R1 1.2539
Daily Pivot Point R2 1.2573
Daily Pivot Point R3 1.2598



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD pares weekly losses near 1.1150, German GDP, US inflation eyed

EUR/USD is trading around 1.1150, attempting a bounce from 119-months lows of 1.1132. The US dollar eases from multi-month highs amid a return of risk appetite and firmer Treasury yields. US advance Q4 GDP beat estimates with 6.9% YoY. German Prelim GDP and US PCE inflation awaited.


GBP/USD regains 1.3400 on Brexit optimism ahead of Sue Gray report, US PCE Inflation

GBP/USD bounces off five-week low amid a sluggish Asian session. UK Foreign Secretary Liz Truss eyes significant progress in Brexit talks by February, Dover queues, DUP portray pessimism. Report over UK PM Johnson’s future leadership remains delayed with more negative details getting added of late.


Gold rebounds ahead of US PCE inflation, not out of the woods yet Premium

Gold price attempts a bounce as the US dollar retreats ahead of US PCE inflation. After Wednesday’s $40 sell-off, gold price tumbled another $23 on Thursday, as bulls finally surrendered the $1,800 area to hit the lowest level in two weeks at $1,792. 

Gold News

Why Bitcoin has entered a new bear market

Bitcoin price has tumbled to a multi-month low below $33,000, as the leading cryptocurrency loses 50% of its value from its all-time high in November 2021. This marks the second-worst sell-off since the bear market that spanned from 2018 to 2020. 

Read more

US PCE Inflation Preview: Dollar rally has more legs to run Premium

Annual Core PCE inflation is forecast to rise to 4.8% in December from 4.7%. US Dollar Index surged to its highest level in more than a year on Fed's hawkish outlook.  Dollar is likely to continue to outperform its rivals in the near term.

Read more