- USDCAD stays depressed after snapping two-day winning streak, reversing from 50-DMA.
- Failure to stay beyond 50-DMA, two-month-old descending resistance line keeps Loonie pair sellers hopeful despite sluggish MACD signals.
- Rising support line from early February restricts immediate downside; Bulls need validation from April’s peak.
USD/CAD bears flirt with the 200-DMA surrounding 1.3465 as they take a breather after the Loonie pair’s biggest daily fall in over a week, especially on the release day of the US Retail Sales and Canada inflation data.
Also read: USD/CAD dives as the Canadian Dollar rides on higher oil prices, soft USD
The Loonie pair reversed from the 50-DMA the previous day to snap a two-day uptrend. The pair’s following declines, however, failed to gain support from the MACD and hence the USD/CAD bears struggle near the 200-DMA support near 1.3465-60 by the press time.
Even if the quote breaks the 200-DMA key support, an upward-sloping support line from early February, close to 1.3365 by the press time. It’s worth noting that the 1.3400 round figure may act as an intermediate halt between the key DMA and the stated support line.
In a case where the USD/CAD bears keep the reins past 1.3365, the odds of witnessing a slump toward the yearly low marked in February near 1.3260 can’t be ruled out. Though, lows marked in April and mid-February, near 1.3340 and 1.3270 respectively, may prod the pair sellers.
On the flip side, the USD/CAD pair’s recovery can aim for the 50-DMA hurdle of around 1.3560 ahead of challenging a 10-week-old descending resistance line, close to 1.3585 by the press time.
Should the quote remains firmer past 1.3585, the previous monthly high of near 1.3665 will be crucial for the Loonie pair buyers before targeting the late March swing high of 1.3805.
USD/CAD: Daily chart
Trend: Further 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
Australian Dollar extends gains despite mixed PMI
The Australian Dollar (AUD) continues to strengthen against the US Dollar (USD) following the release of mixed Judo Bank Purchasing Managers' Index (PMI) data from Australia on Friday. The AUD also benefits from a hawkish outlook by the Reserve Bank of Australia (RBA) regarding future interest rate decisions.
Japanese Yen fails to build on stronger CPI-led intraday uptick against USD
The Japanese Yen (JPY) attracted some follow-through buying for the second successive day following the release of slightly higher-than-expected consumer inflation figures from Japan. This comes on top of Thursday's hawkish remarks from BoJ Governor Kazuo Ueda, which keeps expectations for a December interest rate hike in play.
Gold price advances to near two-week top on geopolitical risks
Gold price touched nearly a two-week high during the Asian session as the worsening Russia-Ukraine conflict benefited traditional safe-haven assets. The weekly uptrend seems unaffected by bets for less aggressive Fed policy easing, sustained USD buying and the prevalent risk-on environment
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
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.