- USD/CAD struggles to defend the bounce off two-week low inside short-term triangle.
- Convergence of 50-SMA, triangle’s top line challenge Loonie pair buyers.
- Bears have a bumpy road to travel before retaking control.
- Sustained trading beyond key SMA, bullish chart pattern and absence of momentum-negative oscillators favor buyers.
USD/CAD grinds near 1.3715-20 as it resists welcoming bulls during the initial hours of the Federal Reserve (Fed) day. In doing so, the Loonie pair struggles to extend the previous day’s recovery moves from the lowest levels in a fortnight inside a two-week-old descending triangle formation.
That said, the quote’s latest hesitance could be linked to the failure to cross the 1.3730 resistance confluence including the 50-SMA and upper line of the stated triangle.
However, the Loonie pair’s ability to provide successful trading above the key SMAs joins the bullish MACD signals and firmer RSI (14), not overbought, keeps the USD/CAD bulls hopeful of overcoming the 1.3730 hurdle.
In that case, the buyers could aim for the monthly high surrounding 1.3865, with the 1.3800 round figure acting as an intermediate halt, before portraying a run-up towards the previous yearly top of 1.3977 and then to the 1.4000 psychological magnet.
On the flip side, the USD/CAD bears need validation from the stated triangle’s lower line, close to 1.3650. Even so, the 200-SMA support near 1.3575 appears a crucial challenge for the sellers to tackle. It’s worth noting that the 100-SMA can offer immediate support near 1.3695.
Overall, USD/CAD is likely to remain firmer but the immediate pullback can’t be ruled out.
USD/CAD: Four-hour chart
Trend: Further upside expected
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.
Recommended content
Editors’ Picks
EUR/USD holds near 1.1100, looks to post small weekly gains
EUR/USD trades near 1.1100 in the American session on Friday. Although the risk-averse market atmosphere caps the pair's upside, dovish comments from Fed officials and the disappointing US jobs report help it hold its ground.
GBP/USD retreats to 1.3150 area after post-NFP spike
GBP/USD turns south and declines to 1.3150 area after spiking to 1.3240 in the early American session. The negative shift seen in risk mood following the US labor market data for August helps the US Dollar stay resilient against its peers and weighs on the pair.
Gold pulls away from near record highs, holds above $2,500
Gold came within a touching distance of a new all-time high near $2,530 as US Treasury bond yields turned south on disappointing US jobs data. The US Dollar's resilience amid a souring risk mood, however, caused XAU/USD to erase its daily gains.
Crypto today: Bitcoin, Ethereum, XRP tests key support, TRON network non-stablecoin activity hits new highs
Bitcoin, Ethereum, and XRP hover around key support levels after registering a steep correction earlier this week. TRON network’s stablecoin activity hit new highs following the release of SunPump.
Nonfarm Payrolls expected to show modest hiring rebound in August after July’s tepid report
The Nonfarm Payrolls report is forecast to show that the US economy added 160,000 jobs in August, after creating 114,000 in July. The Unemployment Rate is likely to dip to 4.2% in the same period from July’s 4.3% reading.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.