- USD/CAD trades 0.21% lower despite some USD strength elsewhere.
- The pair has rejected the 1.34 resistance to settle near 1.3350.
USD/CAD 4-hour chart
For once the whole of the FX market sentiment is not being driven by the US dollar. EUR/USD is trading 0.40% lower and USD/CAD is also lower on the day, this has sent EUR/CAD 0.55% in the red. The Canadian dollar is the best performing currency in the G6 and this could have something to do with the firmer oil price. WTI is testing USD 42 per barrel once again and there was some news earlier in the session of major oil companies reducing their CAPEX for next year.
Looking closer at the chart, the price did not get the chance to test the red downward sloping trendline. The price is now heading below the green horizontal support area at 1.3360. The major low on the chart is the area near the purple line at 1.3235 and this low was formed at the height of the recent USD weakness.
As the dollar starts to recover there could be some resistance levels tested again. If the price does break the red trendline then the orange resistance at 1.3503 could be next. It was a formidable support level in the past and this means it could be a good resistance in the future.
Lastly, the indicators are painting a very mixed picture. The Relative Strength Index is back below the 50 mark and the MACD histogram is green, while the signal lines are above the mid-level.
Overall, the pair is still making lower highs and lower lows. Much of the future price action in USD/CAD will depend on USD strength leading into this week. For now, the bears are certainly in charge but for how long?.
Additional levels
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.