USD/CAD Price Analysis: Rising Channel’s boundary supports greenback bulls around 1.2900

The greenback bulls have strongly defended the lower boundary of the Rising Channel.
The 20- and 50-EMAs are advancing firmly, which favors a bullish bias.
A Double Distribution trading session will keep the loonie bulls on the backfoot.

Sagar Dua FXStreet

The USD/CAD pair has witnessed a strong rebound in the Asian session after hitting a low of 1.2895. The asset is expected to display a bullish Double Distribution trading session as the asset has moved sharply higher after trading in a narrow range of 1.2896-1.2920. Early distribution has been completed, followed by an upside move and the greenback bulls will balance again at elevated levels.

The formation of a Rising Channel chart pattern on a four-hour scale signals an upside move in a specified channel. The upper boundary of the chart pattern is placed from April 13 high at 1.2676 while the lower boundary is plotted from April 21 low at 1.2460 The greenback bulls have displayed a firmer reversal after hitting the lower boundary of the above-mentioned chart pattern.

The 20- and 50-period Exponential Moving Averages (EMAs) at 1.2972 and 1.2938 respectively are scaling higher, which adds to the upside filters.

Also, the Relative Strength Index (RSI) (14) has sensed support from 40.00 levels, which indicates a firmer responsive buying action.

Investors should wait for a minor pullback around the 50-EMA at 1.2938 to initiate long entries. A bargain buy will send the asset towards the psychological resistance at 1.3000, followed by Thursday’s high at 1.3077.

On the flip side, loonie bulls could gain control if the asset drops below Friday’s low at 1.2893. This will drag the asset towards May 4 high at 1.2853. A downside move beyond May 4 high will send the asset towards the round level support at 1.2800.

USD/CAD four-hour chart

USD/CAD

Overview
Today last price	1.2975
Today Daily Change	0.0047
Today Daily Change %	0.36
Today daily open	1.2928

Trends
Daily SMA20	1.2813
Daily SMA50	1.2695
Daily SMA100	1.2689
Daily SMA200	1.2652

Levels
Previous Daily High	1.3049
Previous Daily Low	1.2893
Previous Weekly High	1.3077
Previous Weekly Low	1.2893
Previous Monthly High	1.288
Previous Monthly Low	1.2403
Daily Fibonacci 38.2%	1.2953
Daily Fibonacci 61.8%	1.299
Daily Pivot Point S1	1.2864
Daily Pivot Point S2	1.28
Daily Pivot Point S3	1.2708
Daily Pivot Point R1	1.302
Daily Pivot Point R2	1.3113
Daily Pivot Point R3	1.3177

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

EUR/USD seems fragile below 1.1700 as Middle East war boosts energy prices

The EUR/USD pair trades flat at around 1.1680 during the Asian trading session on Tuesday, but broadly seems vulnerable, being close to its five-week low. The major currency pair is under pressure as surging oil prices due to the United States-Israel war with Iran have increased the risks of higher inflation for the Old Continent.

GBP/USD hovers around 1.3400 with bearish pressure intact

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold sticks to gains above $5,350 amid sustained safe-haven demand; firmer USD caps gains

Gold sticks to its positive bias for the third straight day and trades above the $5,350 level heading into the European session on Tuesday. Concerns about a broader regional conflict in the Middle East continue to weigh on investors' sentiment and underpin demand for the traditional safe-haven bullion.

Stellar risks deeper losses as derivatives metrics turn negative

Stellar is trading red below $0.16 at the time of writing on Tuesday, after a slight recovery the previous day. Weakening derivatives data caps the recovery, while an unfavorable technical outlook projects a deeper correction for the XLM token in the upcoming days.

The market is not panicking it is repricing the probability distribution of Oil and time

At the end of the day, markets do not trade morality or geopolitics. They trade transmission channels. And the only channel that truly matters in this maelstrom runs through the price of energy and the time value of money.

Hyperliquid Price Forecast: HYPE rises on commodities demand amid US-Iran war

Hyperliquid (HYPE) steadies above $33 at press time on Tuesday, marking its fourth consecutive day of recovery in a broadly volatile market due to the ongoing US-Israel strikes on Iran.