USD/CAD Technical Analysis: Bulls gearing up for a move towards reclaiming 1.3300 handle

USD/CAD consolidates Friday’s strong positive move of nearly 100 pips.
The set-up favours bulls and supports prospects for additional gains.

Haresh Menghani FXStreet

The USD/CAD pair extended its sideways consolidative price action through the mid-European session on Monday and remains confined in a narrow trading band near the 200-hour SMA.

The mentioned region, around the 1.3250-60 region, coincides with the 61.8% Fibonacci level of the 1.3323-1.3159 recent downfall and should act as a key pivotal point for intraday traders.

Following Friday’s upsurge of nearly 100 pips, slightly overbought conditions on the 1-hourly chart seemed to be the only factor holding investors from placing any fresh bullish bets.

Meanwhile, oscillators on 4-hourly/daily charts have managed to hold in the bullish territory and support prospects for additional gains amid a weaker tone surrounding oil prices.

Hence, some follow-through appreciating move, back towards challenging a six-month-old descending trend-line resistance near the 1.3300 handle, still looks a distinct possibility.

On the flip side, any meaningful pullback below 50% Fibo. level might attract some dip-buying near the 1.3220 region (38.2% Fibo.) and help limit the downside near the 1.3200 handle.

USD/CAD 1-hourly chart

USD/CAD

Overview
Today last price	1.3261
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	1.3259

Trends
Daily SMA20	1.326
Daily SMA50	1.3217
Daily SMA100	1.323
Daily SMA200	1.328

Levels
Previous Daily High	1.3272
Previous Daily Low	1.317
Previous Weekly High	1.3322
Previous Weekly Low	1.3158
Previous Monthly High	1.3328
Previous Monthly Low	1.3114
Daily Fibonacci 38.2%	1.3233
Daily Fibonacci 61.8%	1.3209
Daily Pivot Point S1	1.3196
Daily Pivot Point S2	1.3133
Daily Pivot Point S3	1.3095
Daily Pivot Point R1	1.3297
Daily Pivot Point R2	1.3335
Daily Pivot Point R3	1.3398

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.