USD/CAD Price Analysis: Monday’s inverted hammer keeps buyers hopeful

USD/CAD prints mild gains but stays above short-term SMA.
Bullish candlestick, MACD signals join sustained trading above 21-day SMA to favor buyers.
Sellers will have a bumpy road above February low.

Anil Panchal FXStreet

USD/CAD drops to an intraday low of 1.2583, down 0.05% on a day, during early Tuesday. In doing so, the quote fails to justify the previous day’s bullish candlestick formation on the daily chart.

However, successful trading above 21-day SMA and bullish MACD, coupled with Monday’s “inverted hammer”, favor USD/CAD buyers targeting 1.2645-50 resistance confluence that includes 50-day SMA and a descending trend line from January 28.

Meanwhile, 1.2630 can offer an intermediate halt whereas the monthly top around 1.2740 can entertain USD/CAD bulls beyond 1.2650.

On the contrary, a daily closing below the 21-day SMA level of 1.2566 will defy the bullish candlestick and can direct USD/CAD lower to mid-1.2500s and 1.2500 support levels.

However, USD/CAD bears are less likely to get convinced unless witnessing a clear downside below February’s low of 1.2468.

USD/CAD daily chart

Trend: Upside expected

additional important levels

Overview
Today last price	1.2586
Today Daily Change	-4 pips
Today Daily Change %	-0.03%
Today daily open	1.259

Trends
Daily SMA20	1.2566
Daily SMA50	1.265
Daily SMA100	1.2755
Daily SMA200	1.3029

Levels
Previous Daily High	1.2627
Previous Daily Low	1.2575
Previous Weekly High	1.2629
Previous Weekly Low	1.2473
Previous Monthly High	1.287
Previous Monthly Low	1.2468
Daily Fibonacci 38.2%	1.2607
Daily Fibonacci 61.8%	1.2595
Daily Pivot Point S1	1.2568
Daily Pivot Point S2	1.2545
Daily Pivot Point S3	1.2515
Daily Pivot Point R1	1.262
Daily Pivot Point R2	1.265
Daily Pivot Point R3	1.2672

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 climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran. The US bombed multiple locations in Tehran, Iran’s Tasnim news agency reported. Israel’s Prime Minister Benjamin Netanyahu said that the attacks on Iran were aimed to remove an “existential threat”.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.