USD/CAD Price Analysis: Wyckoff’s Inventory Accumulation is in making

USD/CAD is marching higher despite upbeat oil prices.
Stretched consolidation after a downfall is demonstrating signs of inventory accumulation.
A 40.00-60.00 range oscillation by the RSI (14) indicates a consolidation ahead.

Sagar Dua FXStreet

The USD/CAD pair is gradually moving towards the round-level resistance of 1.3400 after a recovery move to near 1.3370 in the Asian session. The Loonie asset is inching higher despite rising oil prices amid optimism about a recovery in Chinese economic prospects.

It seems that rising US Treasury yields have weighed on risk-sensitive assets. The return generated by 10-year US Treasury bonds has climbed above 3.54%. S&P500 futures have resumed their correction, portraying a further drop in investors’ risk appetite. The US Dollar Index (DXY) continues to juggle around 102.00.

A stretched consolidation in USD/CAD for the past two weeks after a healthy sell-off is demonstrating signs of Wyckoff’s inventory accumulation in a 1.3360-1.3460 range. A Spring formation on an hourly scale of around 1.3322 is indicating the presence of responsive buyers, which considered the Loonie asset a ‘value buy’ at lower prices.

The 20-period Exponential Moving Average (EMA) at 1.3392 is overlapping on the USD/CAD price, which indicates a consolidation.

Also, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which adds to the consolidation filters.

Should the asset break above January 12 high at 1.3461, US Dollar bulls will drive the asset towards the psychological resistance at 1.3500 followed by January 6 low at 1.3540.

On the contrary, the Loonie asset will witness weakness if it drops below January 13 low at 1.3322. This will expose the asset for further weakness towards November 18 low at 1.3300 and November 15 low at 1.3226.

USD/CAD hourly chart

USD/CAD

Overview
Today last price	1.3391
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.3388

Trends
Daily SMA20	1.351
Daily SMA50	1.3495
Daily SMA100	1.3503
Daily SMA200	1.3177

Levels
Previous Daily High	1.3437
Previous Daily Low	1.3369
Previous Weekly High	1.3461
Previous Weekly Low	1.3322
Previous Monthly High	1.3705
Previous Monthly Low	1.3385
Daily Fibonacci 38.2%	1.3395
Daily Fibonacci 61.8%	1.3411
Daily Pivot Point S1	1.3359
Daily Pivot Point S2	1.333
Daily Pivot Point S3	1.3291
Daily Pivot Point R1	1.3427
Daily Pivot Point R2	1.3466
Daily Pivot Point R3	1.3494

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.