- Loonie bulls are strengthened on multiple downside filters.
- The confluence of Doji, 200-EMA, and the lower boundary of ascending triangle has bolstered the signs of weakness.
- A slippage below 20-EMA has also turned the momentum indicators on the downside.
The USD/CAD pair has witnessed a steep fall in the Asian session after slipping below Monday’s low at 1.2603. The asset is dropping firmly despite the strength in the US dollar index (DXY).
The confluence of Doji candlestick formation after a pullback towards the 200-period Exponential Moving Average (EMA) at 1.2640 and the lower boundary of the ascending triangle on the daily scale after a downside break has raised the odds of a dominant performance by the loonie bulls ahead.
The horizontal resistance of the chart pattern is placed from 20 August 2021 high at 1.2950 while the ascending trendline is plotted from June 2021 low at 1.2007.
A slippage below Monday’s low at 1.2603 has activated the formation of the Doji candlestick pattern. The asset has also tumbled below the 20-EMA at 1.2590, which adds to the downside filters. Meanwhile, the Relative Strength Index (RSI) (14) has faced resistance near 60.00, which signals that the greenback bulls lack strength.
Should the asset drop below March’s last traded price at 1.2503, loonie bulls will drag the asset towards January’s low at 1.2451, followed by the round level support of 1.2400.
On the flip side, greenback bulls may take the charge if the asset surpass Wednesday’s high at 1.2676, which will send the asset towards March 17 high at 1.2699. A breach of the March 17 high will drive the asset towards the March 16 high at 1.2778.
USD/CAD daily chart
-637859455873354918.png)
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
AUD/USD faces potential extra gains near term
Further weakness in the US Dollar allowed AUD/USD to rapidly forget Friday’s pullback and resume the uptrend well north of 0.6700 the figure amidst quite an auspicious start to the new trading week.
EUR/USD now retargets the 1.1150 region
EUR/USD managed to regain upside impulse and break above the 1.1100 barrier to print new multi-day peaks on the back of increasing downward pressure in the Greenback ahead of the key FOMC meeting.
Gold consolidates gains near fresh all-time highs
Gold trades in a narrow range above $2,580 after touching a new record-high near $2,590 earlier in the day. The benchmark 10-year US Treasury bond yield holds above 3.6% ahead of the Fed meeting and makes it difficult for XAU/USD to find direction.
MicroStrategy plans to buy additional Bitcoin following $700 million convertible notes sale
MicroStrategy plans to increase its Bitcoin holdings after announcing a $700 million convertible senior notes offering on Monday. The announcement follows its $1.11 billion Bitcoin purchase a few days ago.
Five Fundamentals for the week: Fed overtowers pivotal week for Gold, stocks and the US Dollar Premium
The Fed's first rate cut stands out as economic uncertainty mounts. US Retail Sales and Jobless Claims are of high interest. Rate decisions by central banks in the UK and Japan are also pivotal.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.