USD/CAD Price Analysis: Pullback towards 1.3550 seems imminent as Oil price recovers, Greenback drops


  • USD/CAD stays pressured while justifying Monday’s bearish Doji, reversal from key resistance line.
  • Looming bear cross on MACD, overbought RSI also suggest Loonie pair’s pullback.
  • Three-week-old rising support line restricts immediate downside ahead of 200-DMA.
  • Bulls need validation from tops marked in May, April for retaking control.

USD/CAD remains on the back foot around 1.3600 after reversing from a three-month high the last week, not to forget the previous day’s U-turn from an important resistance line. That said, the Loonie pair teases bears around the intraday low of 1.3590 during early Tuesday morning in Europe.

In doing so, the Loonie pair not only defends the previous day’s U-turn from a four-month-old resistance line but also justifies the overbought RSI (14) line and the impending bear cross on the MACD indicator. Additionally luring the USD/CAD sellers is the previous day’s Doji candlestick on the Daily chart.

With this, the Loonie pair appears all set to decline towards an upward-sloping support line from August 04, close to 1.3550 by the press time. However, the 200-DMA level of 1.3460 will challenge the USD/CAD pair’s further downside.

Also acting as the downside filter is the previous monthly high of near 1.3385 and May’s bottom surrounding 1.3315.

On the flip side, a daily closing beyond the aforementioned resistance line stretched from late April, around 1.3615, becomes necessary to convince the USD/CAD buyers.

Even so, the tops marked in May and April, near 1.3655 and 1.3670 in that order, will challenge the bulls before giving them control.

It’s worth mentioning that the latest rebound in the Oil price, Canada’s key export item joins the US Dollar’s retreat ahead of the CB Consumer Confidence data for August to weigh on the USD/CAD pair of late.

USD/CAD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price 1.3596
Today Daily Change -0.0004
Today Daily Change % -0.03%
Today daily open 1.36
 
Trends
Daily SMA20 1.3473
Daily SMA50 1.3317
Daily SMA100 1.339
Daily SMA200 1.346
 
Levels
Previous Daily High 1.3612
Previous Daily Low 1.357
Previous Weekly High 1.364
Previous Weekly Low 1.3496
Previous Monthly High 1.3387
Previous Monthly Low 1.3093
Daily Fibonacci 38.2% 1.3586
Daily Fibonacci 61.8% 1.3596
Daily Pivot Point S1 1.3576
Daily Pivot Point S2 1.3552
Daily Pivot Point S3 1.3534
Daily Pivot Point R1 1.3618
Daily Pivot Point R2 1.3636
Daily Pivot Point R3 1.3659

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD gathers fresh upside traction and approaches 1.0580

EUR/USD gathers fresh upside traction and approaches 1.0580

Following an early dip to a new 2024 low at 1.0495, EUR/USD manages to regain some balance and retests the area of daily peaks near 1.0580 as the US Dollar's initial uptick seems to have run out of steam.

EUR/USD News
GBP/USD reclaims the 1.2700 barrier and above

GBP/USD reclaims the 1.2700 barrier and above

In line with the rest of its risk-related peers, GBP/USD leaves behind the initial drop to multi-month lows near 1.2630 and attempts a move beyond 1.2700 the figure amidst renewed weakness in the Greenback.

GBP/USD News
Gold trims early losses hovers around $2,575

Gold trims early losses hovers around $2,575

The loss of momentum in the US Dollar and the retracement in US yields across the curve allow Gold prices to pick up some upside traction and revisit the $2,570 zone per ounce troy, trimming part of their early losses.

Gold News
Missing crypto influencer Kevin Mirshahi found dead in Montreal Park

Missing crypto influencer Kevin Mirshahi found dead in Montreal Park

Authorities report that the remains of Kevin Mirshahi, a prominent crypto influencer who was abducted in June, have been found in a Montreal park. Local police informed “The Gazette” that a passerby found the grim discovery on October 30 in Île-de-la-Visitation Park. 

Read more
Trump vs CPI

Trump vs CPI

US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis. 

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures