USD/CAD Price Analysis: Slides to fresh weekly lows, below 1.2600 mark

  • A combination of factors underpinned the loonie and prompted fresh selling around USD/CAD.
  • The price action between two converging trend-line constitutes the formation of a falling wedge.
  • Neutral technical indicators warrant some caution before placing any aggressive directional bets.

The USD/CAD pair momentarily dropped below the 1.2600 mark and refreshed weekly lows during the first half of the European session.

Against the backdrop of Tuesday's upbeat Canadian Q4 GDP print, a modest uptick in crude oil prices continued underpinning the commodity-linked loonie. This, along with the emergence of some fresh selling around the US dollar, exerted some pressure on the USD/CAD pair.

From a technical perspective, the intraday slide found some support near a downward sloping trend-line. This, along with another descending trend-line, seemed to constitute the formation of a falling wedge pattern on intraday charts and favours bullish traders.

The constructive set-up, however, is not confirmed until the USD/CAD pair decisively breaks through the resistance marked by the top boundary of the wedge. The mentioned hurdle is pegged near the 1.2655-60 area and should act as a key pivotal point for traders.

Meanwhile, technical indicators on 4-hourly/daily charts – though have been recovering from the negative territory – are yet to confirm a bullish bias. This further makes it prudent to wait for a sustained move beyond the mentioned barrier before placing fresh bets.

On the flip side, some follow-through selling below the daily swing lows, around the 1.2595-90 region will negate prospects for any meaningful recovery. This would turn the USD/CAD pair vulnerable to accelerate the slide further towards the key 1.2500 psychological mark.

USD/CAD 1-hourly chart


Technical levels to watch


Today last price 1.2608
Today Daily Change -0.0013
Today Daily Change % -0.10
Today daily open 1.2621
Daily SMA20 1.2678
Daily SMA50 1.2721
Daily SMA100 1.2871
Daily SMA200 1.3124
Previous Daily High 1.2698
Previous Daily Low 1.26
Previous Weekly High 1.273
Previous Weekly Low 1.2468
Previous Monthly High 1.287
Previous Monthly Low 1.2468
Daily Fibonacci 38.2% 1.2638
Daily Fibonacci 61.8% 1.2661
Daily Pivot Point S1 1.2582
Daily Pivot Point S2 1.2542
Daily Pivot Point S3 1.2484
Daily Pivot Point R1 1.268
Daily Pivot Point R2 1.2738
Daily Pivot Point R3 1.2777



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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slips from highs as investors await US Retail Sales

EUR/USD has backed down from the highs near 1.20 as the dollar benefits from the Fed's upbeat mood. All eyes are on US Retail Sales, which are set to leap. 


GBP/USD rises toward 1.38 ahead of US data, Brexit meeting

GBP/USD is edging up toward 1.38, reversing its previous falls in tense trading ahead of all-important US retail sales. A Brexit-related meeting on Northern Ireland is also eyed. 


ETH sizes the spotlight as BTC and XRP contemplate retracement

Bitcoin price shows a correction in play after the MRI flashed a red ‘one’ cycle top signal. Ethereum shows a strong trend continuation while the rest of the market experiences a minor pullback. Ripple faces retracement from Wednesday’s trading session, looks to continue until retesting support at $1.56.

Read more

XAU/USD looks to retest $1750 as USD bounce fizzles ahead of US Retail Sales

Gold is breaking higher as the US dollar rebound loses steam. The US Treasury yields retreat ahead of the Retail Sales release. XAU/USD is teasing symmetrical triangle breakout on the 1H chart.

Gold News

Breaking: Coinbase jumps 10% pre-market: ARK's Cathie dumps Tesla (TSLA) to COIN it in

Cathie Wood of ARK Invest fame clearly likes the crypto space as her ARK Invest fund purchased $246 million worth of COIN on the first day of trading.

Read more