USD/CAD Price Analysis: Wyckoff’s Inventory Accumulation is in making

USD/CAD is marching higher despite upbeat oil prices.
Stretched consolidation after a downfall is demonstrating signs of inventory accumulation.
A 40.00-60.00 range oscillation by the RSI (14) indicates a consolidation ahead.

Sagar Dua FXStreet

The USD/CAD pair is gradually moving towards the round-level resistance of 1.3400 after a recovery move to near 1.3370 in the Asian session. The Loonie asset is inching higher despite rising oil prices amid optimism about a recovery in Chinese economic prospects.

It seems that rising US Treasury yields have weighed on risk-sensitive assets. The return generated by 10-year US Treasury bonds has climbed above 3.54%. S&P500 futures have resumed their correction, portraying a further drop in investors’ risk appetite. The US Dollar Index (DXY) continues to juggle around 102.00.

A stretched consolidation in USD/CAD for the past two weeks after a healthy sell-off is demonstrating signs of Wyckoff’s inventory accumulation in a 1.3360-1.3460 range. A Spring formation on an hourly scale of around 1.3322 is indicating the presence of responsive buyers, which considered the Loonie asset a ‘value buy’ at lower prices.

The 20-period Exponential Moving Average (EMA) at 1.3392 is overlapping on the USD/CAD price, which indicates a consolidation.

Also, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which adds to the consolidation filters.

Should the asset break above January 12 high at 1.3461, US Dollar bulls will drive the asset towards the psychological resistance at 1.3500 followed by January 6 low at 1.3540.

On the contrary, the Loonie asset will witness weakness if it drops below January 13 low at 1.3322. This will expose the asset for further weakness towards November 18 low at 1.3300 and November 15 low at 1.3226.

USD/CAD hourly chart

USD/CAD

Overview
Today last price	1.3391
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.3388

Trends
Daily SMA20	1.351
Daily SMA50	1.3495
Daily SMA100	1.3503
Daily SMA200	1.3177

Levels
Previous Daily High	1.3437
Previous Daily Low	1.3369
Previous Weekly High	1.3461
Previous Weekly Low	1.3322
Previous Monthly High	1.3705
Previous Monthly Low	1.3385
Daily Fibonacci 38.2%	1.3395
Daily Fibonacci 61.8%	1.3411
Daily Pivot Point S1	1.3359
Daily Pivot Point S2	1.333
Daily Pivot Point S3	1.3291
Daily Pivot Point R1	1.3427
Daily Pivot Point R2	1.3466
Daily Pivot Point R3	1.3494

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.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.