USD/CAD Price Analysis: More gains in pipeline above 1.3670 amid risk-off mood

USD/CAD is struggling to surpass 1.3650, however, the upside looks favored amid strength in the USD Index.
The Canadian Dollar witnessed immense heat on Tuesday after releasing weak GDP (Q4) figures.
The RSI (14) has shifted into the bullish range of 60.00-80.00 after a long period of more than four months.

Sagar Dua FXStreet

The USD/CAD pair has delivered a minor corrective move after failing to continue its upside momentum above 1.3650 in the early Asian session. The Loonie asset is expected to recover the corrective move as the US Dollar is extremely solid amid rising bets for more rates by the Federal Reserve (Fed) as inflation in the United States economy is getting more stubborn.

The Canadian Dollar witnessed immense heat on Tuesday after releasing weak Gross Domestic Product (GDP) (Q4) numbers. The annualized GDP remained flat lower than the expectations of 1.5% and the former release of 2.3%. While the monthly GDP (Dec) contracted by 0.1% vs. a flat consensus.

The US Dollar Index (DXY) is aiming to cross the immediate resistance of 104.60 as the risk-aversion theme has been strengthened amid hawkish Fed bets and geopolitical tensions. S&P500 was offered on Tuesday as investors see recession amid deepening rate hike discussions among Fed policymakers.

USD/CAD is meaningfully strengthened after delivering a breakout of the downward-sloping trendline plotted from October 13 high at 1.3978 on a daily scale. The 10-period Exponential Moving Average (EMA) at 1.3558 is providing cushion to the US Dollar bulls.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00 after a long period of more than four months. More upside looks favored as the momentum oscillator is not showing any sign of divergence and overbought levels.

The Loonie asset is expected to add more gains after surpassing February 24 high at 1.3665, which will drive the asset toward the horizontal resistance plotted from December 07 high around 1.3700 followed by November 03 high around 1.3800.

Alternatively, a break below February 6 high at 1.3474 will drag the asset to near January 26 high around 1.3408. A slippage below the same will expose the asset to February 16 low around 1.3357.

USD/CAD daily chart

USD/CAD

Overview
Today last price	1.3641
Today Daily Change	0.0065
Today Daily Change %	0.48
Today daily open	1.3576

Trends
Daily SMA20	1.3434
Daily SMA50	1.346
Daily SMA100	1.351
Daily SMA200	1.3268

Levels
Previous Daily High	1.3624
Previous Daily Low	1.3534
Previous Weekly High	1.3666
Previous Weekly Low	1.3441
Previous Monthly High	1.3685
Previous Monthly Low	1.33
Daily Fibonacci 38.2%	1.3569
Daily Fibonacci 61.8%	1.359
Daily Pivot Point S1	1.3531
Daily Pivot Point S2	1.3487
Daily Pivot Point S3	1.3441
Daily Pivot Point R1	1.3622
Daily Pivot Point R2	1.3669
Daily Pivot Point R3	1.3713

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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