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.

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

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD struggling to retain the 0.6900 mark

AUD/USD struggling to retain the 0.6900 mark

Wall Street plunged on Tuesday, dragging AUD/USD lower as the greenback benefited from the risk-averse sentiment. Softening gold prices weighed further on the aussie, now approaching its June lows. Australian Retail Sales in the docket.

AUD/USD News

EUR/USD nears 1.0500 amid inflation and recession concerns

EUR/USD nears 1.0500 amid inflation and recession concerns

The EUR/USD pair bounced modestly from a Tuesday’s low of 1.0502, maintaining a near-term bearish bias amid concerns related to economic growth and central banks’ actions to tame inflation. US core PCE inflation and German CPI coming up next.

EUR/USD News

Gold: Can the dollar finally win the battle?

Gold: Can the dollar finally win the battle?

XAUUSD is technically bearish and could soon lose the $1,800 level. Gold retains the sour tone on Tuesday, now trading at around $1,823.00 a troy ounce. The dollar seesawed between gains and losses, turning higher after the release of discouraging US data.

Gold News

Summertime bull-run a multi-year bear market?

Summertime bull-run a multi-year bear market?

The cryptocurrency market is in a historical pivotal moment. One good trade could replenish all losses, while one bad trade could be catastrophic.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures