USD/CAD Price Analysis: Forming a strong base near 200-hour SMA


  • 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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: ECB and US Treasury yields to make it or break it

The EUR/USD pair fell to a fresh 2021 low at 1.1892 this week, ending with a handful of pips above this level. The dollar soared across the board following comments from the head of US Federal Reserve Jerome Powell.

EUR/USD News

GBP/USD: Dollar bulls taking over

The British Pound was among the best performers against the greenback, surging above the 1.4000 level for the first time this week. Soaring US Treasury yields after Powell’s speech sent the dollar skyrocketing. GBP/USD struggling around 1.3900 and at risk of falling further.

GBP/USD News

Gold still eyes June 2020 lows at $1670 after weekly closing below $1700

Weekly closing below $1700 keeps the XAU/USD sellers hopeful. A bounce towards 50-SMA on 4H cannot be ruled out in the near-term. RSI stays bearish while gold holds within a potential falling wedge.

Gold News

Ethereum price primed for a swift recovery as the network prepares for a major update in July

Ethereum price aims for a significant recovery towards $2,000. A major upgrade scheduled for July intends to fix the problem with gas fees on Ethereum. ETH miners are not happy with the decision.

Read more

US Dollar Index pushes higher to 92.20 on stellar Payrolls

The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures