USD/CAD Technical Analysis: Retreats from 200-hour SMA/ascending trend channel confluence hurdle

Haresh Menghani FXStreet

• The pair has been steadily climbing alongside a short-term ascending trend-channel formation on the 1-hourly chart since the early North-American session on Friday.

• The positive momentum stalled near the trend-channel resistance, also coinciding with 200-hour SMA amid a fresh wave of broad-based USD selling pressure.

• Considering the pair's recent decline, the ascending channel seems to constitute towards a bearish flag chart pattern formation on the mentioned chart.

• Moreover, technical indicators on the daily chart are still far from oversold but are yet to recover from the negative territory and add credence to the bearish outlook.

• Hence, the ongoing recovery momentum might still be seen as corrective in nature and runs the risk of facing fresh supply on every attempted up-move.

USD/CAD 1-hourly chart

Spot Rate: 1.2954
Daily High: 1.2973
Daily Low: 1.2945
Trend: Bullish

Resistance
R1: 1.2973 (current day swing high)
R2: 1.3000 (psychological mark)
R3: 1.3026 (R3 daily pivot-point)

Support
S1: 1.2924 (S1 daily pivot-point)
S2: 1.2900 (round figure mark)
S3: 1.2863 (200-day SMA)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.