• USD/CAD retreated further from a descending trend-line resistance tested on Monday.
  • The intraday downfall now seems to have found a decent support near 200-hour SMA.
  • Mixed oscillators on hourly/daily charts warrant some caution for aggressive traders.

The USD/CAD pair extended the previous day's rejection slide from the 1.2800 mark and witnessed some selling on Tuesday. The mentioned handle coincides with a short-term descending trend-line and should now act as a key pivotal point for short-term traders.

Meanwhile, the downfall lacked any follow-through selling and the USD/CAD pair, for now, seems to have formed a base near 200-hour SMA. Hence, it will be prudent to wait for a convincing break below the mentioned support before positioning for any further decline.

A fresh leg up in the US Treasury bond yields extended some support to the USD. This, along with the reluctant to place any aggressive bets ahead of the BoC decision on Wednesday, held investors from placing any directional bets and might help limit the downside.

Technical indicators on the daily chart – though have been recovering from the negative territory – are yet to confirm a bullish bias. Moreover, oscillators on the 4-hourly charts are holding in the neutral territory and further warrant caution for aggressive traders.

That said, sustained weakness below the 1.2725 region (200-hour SMA) might prompt some aggressive technical selling and turn the USD/CAD pair vulnerable to break below the 1.2700 mark. The downward trajectory could then drag the pair towards the 1.2665 support area.

On the flip side, immediate resistance is pegged near the 1.2760 region, above which bulls are likely to make a fresh attempt to conquer the 1.2800 mark. Some follow-through buying should pave the way for an extension of the recent recovery move from multi-year lows.

USD/CAD 1-hourly chart

fxsoriginal

Technical levels to watch

USD/CAD

Overview
Today last price 1.2727
Today Daily Change -0.0019
Today Daily Change % -0.15
Today daily open 1.2746
 
Trends
Daily SMA20 1.2758
Daily SMA50 1.2861
Daily SMA100 1.3032
Daily SMA200 1.3329
 
Levels
Previous Daily High 1.2799
Previous Daily Low 1.2726
Previous Weekly High 1.2836
Previous Weekly Low 1.2625
Previous Monthly High 1.301
Previous Monthly Low 1.2688
Daily Fibonacci 38.2% 1.2771
Daily Fibonacci 61.8% 1.2754
Daily Pivot Point S1 1.2715
Daily Pivot Point S2 1.2684
Daily Pivot Point S3 1.2642
Daily Pivot Point R1 1.2788
Daily Pivot Point R2 1.283
Daily Pivot Point R3 1.2861

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD remains sidelined below 1.0600 ahead US data

EUR/USD remains sidelined below 1.0600 ahead US data

EUR/USD is trading close to 1.0600, keeping its range play intact. The US dollar stays sluggish amid a better mood, awaiting the CB Consumer Confidence data. The euro shrugs off the ECB commentary on the new anti-fragmentation tool. 

EUR/USD News

GBP/USD ranges below 1.2300 amid sluggish USD, US data eyed

GBP/USD ranges below 1.2300 amid sluggish USD, US data eyed

GBP/USD is moving back and forth in a familiar range below 1.2300, lacking a clear directional bias amid a muted US dollar index and risk-on sentiment. Ongoing Brexit and UK political woes remain a drag on the pound. US data eyed. 

GBP/USD News

Gold bears eye $1,820 and $1,816 as next targets

Gold bears eye $1,820 and $1,816 as next targets

Optimism prevails, pointing to a turnaround Tuesday for the financial markets, as the previous week’s upbeat global momentum returns and caps the broad US dollar recovery. Investors remain wary ahead of the key NATO Summit.

Gold News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures