• USD/CAD is correcting from daily resistance and 1.2530s are eyed. 
  • A deeper correction can move to 1.25 the figure.

As per the prior series of analyses for USD/CAD, USD/CAD Price Analysis: Bulls moving in for the kill, 38.2% Fibo 1.2550 eyed, the price has continued to track a typical price action path and is pressuring the 1.2550s as forecasted.

USD/CAD prior analysis

At the time of the prior analysis, the daily chart showed that the price had run into an area of demand and had stalled. This exposed the 38.2% Fibonacci retracement level near 1.2550 for the current week.

The price has reached the target area:

At this juncture, bulls will be looking for a discount and for a bullish structure to mount towards a deeper retracement of the daily bearish impulse and through the current layer of resistance.

USD/CAD 4-hour chart

The 4-hour chart is showing that the price is meeting the 4-hour resistance structure and is being rejected. This could give rise to a deeper correction into the prior resistance that has a confluence of the 61.8% ratio at 1.25 the figure, or at least to the 50% mean reversion mark as illustrated above near 1.2520. 

USD/CAD H1 chart

The hourly chart, however, shows structure higher up which will need to be overcome first near 1.2530.

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 bounces from 0.6850 as China's PMIs return to expansion

AUD/USD bounces from 0.6850 as China's PMIs return to expansion

AUD/USD is bouncing from the 0.6850 area, as bulls find support from the expansion reported in the Chinese NBS PMIs. The US dollar clings to recent gains amid a cautious market mood, awaiting the critical US PCE inflation. 

AUD/USD News

USD/JPY advances towards 137.00 amid firmer DXY and mixed Japan data

USD/JPY advances towards 137.00 amid firmer DXY and mixed Japan data

The USD/JPY pair is aiming to recapture its fresh 23-year high around 137.00 as the DXY has strengthened on hawkish commentary from Fed chair Jerome Powell. Japan’s mixed Industrial production data has weakened the yen bulls further.

USD/JPY News

Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold stays on the way to $1,807 support ahead of US PCE inflation

Gold Price struggles to defend the previous day’s bounce off short-term key support during Thursday’s Asian session. In doing so, the yellow metal remains indecisive around $1,818. The yellow metal dropped to the lowest levels in two weeks the previous day.

Gold News

Polygon's MATIC price signals hard times to come, here's why

Polygon's MATIC price signals hard times to come, here's why
Polygon’s MATIC price signals bears have re-entered the market. If the profit-taking continues, a cataclysmic fall could occur to breach the $0.31 low
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