USD/CAD Price Analysis: Recovers around 50-60 pips from over 1-week lows

  • USD/CAD added to the overnight losses and dropped to over one-week lows on Thursday.
  • Weaker oil prices undermined the loonie and helped limit deeper losses, at least for now.

The USD/CAD pair dropped to over one-week lows, closer to mid-1.4000s during the early North-American session, albeit quickly recovered few pips thereafter.

The overnight break below 200-hour SMA and a subsequent slide below the 38.2% Fibonacci level of the 1.3518-1.4668 upsurge acted as a key trigger for bearish traders.

However, the intraday downtick showed some resilience below 50.0% Fibo. level amid slightly oversold conditions on the 1-hourly chart and weaker crude oil prices.

Meanwhile, technical indicators on the daily chart – though have been correcting – have still managed to hold in the bullish territory and warrant some caution for bears.

Hence, it will be prudent to wait for some strong follow-through selling, possibly below daily swing lows, around the 1.4070-65 region, before positioning for a further slide.

Sustained break through the mentioned support will set the stage for an extension of the pair’s recent sharp retracement slide from multi-year tops set last Thursday.

On the flip side, any meaningful recovery attempt might confront some fresh supply the 1.4190-1.4200 region and seems more likely to remain capped ahead of 38.2% Fibo.

USD/CAD 1-hourly chart


Technical levels to watch


Today last price 1.4119
Today Daily Change -0.0073
Today Daily Change % -0.51
Today daily open 1.4192
Daily SMA20 1.3871
Daily SMA50 1.348
Daily SMA100 1.3323
Daily SMA200 1.3259
Previous Daily High 1.4484
Previous Daily Low 1.4178
Previous Weekly High 1.4668
Previous Weekly Low 1.3788
Previous Monthly High 1.3465
Previous Monthly Low 1.3202
Daily Fibonacci 38.2% 1.4295
Daily Fibonacci 61.8% 1.4367
Daily Pivot Point S1 1.4086
Daily Pivot Point S2 1.398
Daily Pivot Point S3 1.3781
Daily Pivot Point R1 1.4391
Daily Pivot Point R2 1.459
Daily Pivot Point R3 1.4696



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