-
USDCAD treats its wounds with solid bounce.
-
Caution needed as familiar resistance nearby.
USDCAD gathered significant momentum on Thursday, flipping weekly losses into a 0.20% gain after a slightly stronger US CPI report.
The pair kept its footing above its simple moving averages (SMAs), but the descending trendline from the 2020 top resumed its resistance role, halting the bullish action marginally below 1.3700. Despite some positive signs coming from the RSI and the stochastic oscillator, the bulls need to break through that threshold to move towards the 2023 wall of 1.3800-1.3860. The 2022 peak of 1.3276 could be the next destination.
On the downside, the 20- and 50-day SMAs could hold the market above the short-term support trendline drawn from July near 1.3500. Note that the 200-day SMA is flattening in the same region. Hence, a step lower could trigger another negative correction towards the support line from November at 1.3390. Failure to bounce there could squeeze the price into the 1.3245-1.3290 zone, where the upper band of the broker bearish channel intersects the 2021 ascending trendline.
In brief, the recent solid rise in USDCAD looks appealing, but it may not last if it can't run sustainably above 1.3700.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.