- USD/CAD holds lower ground near intraday low, snaps two-day uptrend.
- Bearish MACD signals, downbeat RSI hints at further downside of the Loonie pair.
- Convergence of 100-HMA, support line of two-week-old ascending triangle restricts short-term declines of the USD/CAD pair.
USD/CAD drops 0.25% intraday during the first loss-making day in three heading into Thursday’s European session. In doing so, the Loonie pair drops to 1.3520 by the press time.
That said, the USD/CAD pair’s latest moves appear forming a fortnight-old ascending triangle formation. The same joins downbeat RSI (14) and bearish MACD signals to favor the bearish chart formation.
However, a clear downside break of 1.3500 becomes necessary as the 100-Hour Moving Average (HMA) joins the stated triangle’s lower line to increase the strength of the stated support confluence.
Following that, tops marked during late January and early February, respectively near 1.3520 and 1.3475, could probe the USD/CAD bears before directing them to the theoretical target surrounding 1.3200.
On the contrary, USD/CAD buyers may aim for the latest swing high surrounding 1.3570 before poking the stated triangle’s top line, close to 1.3585 by the press time.
In a case where the Loonie pair remains firmer past 1.3585, the bearish chart formation gets defied as the bulls brace for a late 2022 swing high surrounding 1.3700.
To sum up, USD/CAD slips off bull’s radar but the sellers await clear break of 1.3500 to retake control.
USD/CAD: Hourly chart
Trend: Limited downside expected
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.
Recommended content
Editors’ Picks
EUR/USD holds near 1.0900 ahead of key ECB meeting
EUR/USD recovers modestly from multi-month lows and fluctuates at around 1.0900 Wednesday. The cautious market mood ahead of Thursday's ECB policy announcements, however, makes it difficult for the pair to continue to stretch higher.
GBP/USD remains heavy near 1.3000 after soft UK inflation data
GBP/USD stays under bearish pressure near 1.3000 in the European session. The data from the UK showed that the annual CPI inflation declined to 1.7% in September from 2.2% in August, weighing heavily on the Pound Sterling.
Gold price advances to three-week top amid risk-off mood, bullish USD might cap gains
Gold price scales higher for the second straight day on Wednesday – also marking the fourth day of a positive move in the previous five – and climbs a three-week high, around the $2,677-$2,678 region heading into the European session.
Why is the ECB set to cut interest rates again and what does that mean
The ECB is widely expected to cut interest rates on Thursday for the third time this year. This is a significant achievement as it suggests that the ECB, which sets monetary policy in the Eurozone, is accelerating its path towards lower interest rates after an unprecedented increase.
British inflation dips to 1.7% in September
And speaking of inflation and Europe, inflation in Britain not only fell below 2% in September but came in significantly lower than expected (1.7%y-o-y vs 1.9% expected).
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.