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Loonie

USDCAD renews 13-week high ahead of BoC, US PMIUSDCAD rises for the sixth consecutive day while extending the early-week breakout of a downward-sloping resistance line from mid-April, now immediate support, as traders await the Bank of Canada (BoC) Interest Rate Decision. Apart from the trend line breakout and dovish expectations from the BoC, hopes of witnessing upbeat US S&P Global PMI for July and softer prices of Canada’s key export, namely Crude Oil, also propel the Loonie pair. However, the RSI (14) line approaches the overbought territory, which in turn highlights an 8.5-month-old descending trend line resistance surrounding 1.3815 as the key upside barrier for the bulls. Even if the quote manages to remain firmer past 1.3815, the yearly high of near 1.3845 and the early November 2023 swing top surrounding 1.3855 will act as additional hurdles for buyers before directing them toward the 2023 high of 1.3900 and then to the 1.4000 psychological magnet. Meanwhile, a hawkish surprise from the BoC and/or downbeat US data and strong crude oil prices might drag the USDCAD pair back toward the resistance-turned-support line surrounding 1.3750. It should be observed, however, that a convergence of the 50 and 21 SMAs, near 1.3685-80 by the press time, appears a tough nut to crack for the Loonie pair bears. In a case where the quote remains weak past 1.3680, the 61.8% Fibonacci ratio of the November-December 2023 downturn, around 1.3625, will precede the 200-SMA level of 1.3598 to act as the final defense of the bull before giving total control the sellers. Overall, the USDCAD is likely to extend the latest run-up toward the key upside hurdle. However, the quote’s rush to refresh the yearly peak needs some time and/or a strong catalyst.
by MTradingGlobal
USDCAD rises within rising wedge ahead of Canada inflationUSDCAD prints a three-day winning streak despite mildly bid Oil price, bracing for the monthly Canada inflation numbers within a seven-week-old rising wedge bearish chart formation. In doing so, the Loonie pair extends last week’s rebound from a 200-bar Exponential Moving Average (EMA) backed by the price-positive RSI conditions and a looming bull cross on the MACD. With this, the quote is likely to extend the latest run-up toward a month-long horizontal resistance surrounding 1.3535-40. Following that, the stated wedge’s top line, close to the 1.3600 threshold, will be in the spotlight. In a case where the pair price remains firmer past 1.3600, it defies the bearish chart pattern and enables the buyers to aim for the late 2023 highs. Meanwhile, a convergence of the 200-EMA and the aforementioned rising wedge’s lower line, near 1.3465 by the press time, puts a floor under the USDCAD price. Should the quote break the stated key support, it confirms the bearish chart formation and highlights a theoretical target of 1.3050. However, lows marked during late January and December, around 1.3360 and 1.3180 respectively, could test the Loonie pair bears during the fall past 1.3465. Additionally acting as a downside filter is the 1.3000 psychological magnet. Overall, the USDCAD is likely to extend its recent run-up within a bearish chart formation unless today’s Canada data and the latest increase in Oil price, Canada’s key export, propel the Canadian Dollar (CAD).
by MTradingGlobal
USDCAD jumps to one-month high ahead of Canada inflationUSDCAD rises for the fourth consecutive day while poking the 200-SMA as the pair traders await Canadian inflation data, namely the Consumer Price Index (CPI) and the Bank of Canada (BoC) CPI. It’s worth noting that the firmer RSI (14) line and the bullish MACD signals favor the latest bull run. Adding strength to the upside bias is the daily closing beyond the previous resistance line stretched from early November. However, the RSI line is approaching the overbought territory and hence suggests a limited upside room for the quote. As a result, the 200-SMA level of 1.3480 appears a tough nut to crack for the Loonie pair buyers, a break of which will open doors for the quote’s quick run-up toward the previous monthly high of around 1.3620. Meanwhile, the USDCAD pair’s pullback remains elusive unless the quote stays beyond the resistance-turned-support line of around 1.3400. Should the Loonie pair remain bearish past 1.3400 and gain support from upbeat Canada inflation data, its further declines toward the 78.6% Fibonacci retracement of the July-November upside, near 1.3260, followed by the previous monthly low of around 1.3180, can’t be ruled out. It’s worth noting, however, that the year 2023 low marked in July near 1.3090 and the 1.3000 psychological magnet appears as the last defense of the pair buyers. Overall, the USDCAD pair secures its place on the bull’s radar ahead of the key Canada data.
by MTradingGlobal
USDCAD retreats from 1.3600 resistance ahead of BoC announcementUSDCAD takes offers to refresh the intraday low near 1.3570 while snapping a two-day uptrend ahead of the Bank of Canada (BoC) Interest Rate Decision. In doing so, the Loonie pair reverses from a convergence of the 100-day Exponential Moving Average (EMA) and a month-old descending trend line, around 1.3600 by the press time. It’s worth noting that the BoC is expected to keep the monetary policy unchanged but the latest rebound in the Crude Oil price, Canada’s key export, could join the hawkish commentary from the central bank, if any, to drag the quote further toward the 200-EMA. The expectations of a pullback in prices also take clues from bearish MACD signals and sluggish RSI. That said, the quote’s weakness past the 200-EMA level of 1.3518 appears difficult as the bottom line of a five-week-old bearish channel, forming part of a broader “bull flag” formation, could challenge the bears around 1.3470. Alternatively, a daily closing beyond the 1.3600 resistance confluence will enable the USDCAD buyers to aim for the bull flag confirmation by crossing the 1.3685 upside hurdle. Following that, the quote’s theoretical rally towards 1.4500 gains attention. However, the previous monthly high of around 1.3900 and the 1.4000 psychological magnet could test the Loonie pair buyers. It should be observed that the April 2020 high surrounding 1.4300 also acts as an upside filter should the quote remain firmer past the 1.4000 threshold. Overall, the USDCAD is likely to decline ahead of the BoC’s verdict. However, the downside room appears limited.
by MTradingGlobal
USDCAD sellers need validation from 1.3670 and Canada inflation USDCAD fades the week-start recovery as market players await Canada inflation data on early Tuesday. In doing so, the Loonie pair defends the previous week’s U-turn from the 100-SMA while retreating towards a two-month-old rising support line. Adding strength to the bearish bias are the downbeat MACD signals and the mostly steady RSI (14). However, the quote’s further downside needs a clear downside break of the aforementioned trend line support, close to 1.3670 by the press time, as well as upbeat prints of the Canada Consumer Price Index (CPI) and the Bank of Canada (BoC) CPI for October. That said, the pair’s sustained downside past 1.3670, backed by strong Canada inflation, could quickly drag prices to the 50% and 61.8% Fibonacci ratios of the pair’s September-November upside, respectively near 1.3640 and 1.3570. Meanwhile, USDCAD buyers need to cross the 100-SMA level of 1.3770 and must get support from the Canada inflation to retake control. Even so, a downward-sloping resistance line from early November, close to 1.3815 at the latest, will act as an extra filter toward the north. Following that, the pair’s run-up toward the monthly high of around 1.3890 and then to the 1.4000 psychological magnet can’t be ruled out. Overall, USDCAD is likely to remain on the bear’s radar but needs strong Canada inflation data to drop further.
by MTradingGlobal
Rising wedge confirmation favors USDCAD bears at 13-day lowUSDCAD posted the biggest weekly loss in more than seven months amid broad-based US Dollar weakness and the upbeat performance of WTI crude oil, which is Canada’s biggest export earner. In doing so, the Loonie pair also confirmed a two-month-old rising wedge bearish chart formation. Also strengthening the downside bias are bearish MACD signals and an absence of oversold RSI. With this, the quote is likely to extend the latest south-run towards the theoretical target of rising wedge confirmation, i.e. 1.3220. That said, the 50-SMA restricts the immediate downside of the pair to around 1.3630 while a convergence of the 100-SMA and 50% Fibonacci retracement of the July-November upside, near 1.3490, will act as an extra filter toward the south. Meanwhile, the USDCAD pair’s corrective bounce appears less impressive unless it stays below the aforementioned wedge’s bottom line, close to 1.3760 by the press time. Even if the Loonie pair crosses the 1.3760 immediate upside hurdle, the wedge’s top line and the recent peak, respectively near 1.3890 and 1.3900, should check the bulls before giving them control. Additionally, the previous yearly top surrounding 1.3980 and 1.4000 psychological magnet will also prod the quote’s upside. Overall, the USDCAD pair is likely to remain bearish during the trading week comprising lesser data/events.
by MTradingGlobal
USDCAD bears attack resistance-turned-support near 1.3650USDCAD remains pressured for the third consecutive day after reversing from a 6.5-month high marked last week. In doing so, the Loonie pair struggles to justify the recent run-up of the US Dollar, mainly due to the risk-off mood, as Canada’s main export item, namely WTI crude oil, jumps 4.0% on geopolitical fears surrounding the Israel war. Apart from the strength of the Greenback and the WTI, a one-year-old previous resistance line surrounding 1.3650 also challenges the pair sellers. Should the quote break the 1.3650 support, sellers could rush toward the mid-January swing high near 1.3520. However, a convergence of the 200-day SMA and a three-month-old rising support line, close to 1.3460, will be a tough nut to crack for the pair bears. Meanwhile, the 1.3700 threshold guards the immediate upside of the USDCAD pair ahead of the latest swing surrounding 1.3785. Following that, the yearly high marked in March around 1.3865 and the 1.3900 round figure could lure the Loonie pair buyers. It’s worth noting that the previous yearly peak of near 1.3980 and the 1.4000 psychological magnet will challenge the pair’s upside past 1.3900 before giving a free hand to the bulls. Overall, USDCAD remains on the bull’s radar despite the latest retreat from the multi-month high.
by MTradingGlobal
USDCAD sellers need validation from 1.3430 and Canada inflationUSDCAD stays pressured at the lowest level in a month after breaking a six-week-old horizontal support. Adding strength to the downside bias is the Loonie pair’s sustained trading below the 200-SMA. However, the nearly oversold RSI (14) line and sluggish MACD signals prod the bears, which in turn highlights a two-month-old ascending support line, close to 1.3430 at the latest. It should be noted, however, that a downside break of the 1.3430 support will make the quote vulnerable to drop towards the 50% Fibonacci retracement of July-September upside, near 1.3390, and to the 61.8% Fibonacci ratio of 1.3320 ahead of directing the bears toward multiple tops marked in July and August around 1.3230. Meanwhile, a horizontal area comprising multiple levels marked since early August, between 1.3490 and 1.3500, guards the immediate recovery of the USDCAD pair. Also acting as the nearby upside hurdles for the Loonie pair is a one-week-old descending trend line and 200-SMA, respectively near 1.3510 and 1.3530. It should be noted that the quote’s run-up beyond 1.3530 will aim for the 1.3600 and the double tops marked in late August around 1.3635-40. In a case where the bulls manage to keep the reins past 1.3640, the monthly high surrounding 1.3700 will be in the spotlight. Overall, the USDCAD pair is likely to decline further but the downside room appears limited.
by MTradingGlobal
USDCAD bulls jostle with 1.3640-50 crucial resistance on BoC DayUSDCAD bulls struggle to keep the reins at a five-month high as markets await the all-important Bank of Canada (BoC) Interest Rate Decision and the US ISM Services PMI for August. That said, the nearly overbought RSI and impending bear cross on the MACD checks buyers as they attack a convergence of an 11-month-old descending resistance line and a horizontal region comprising multiple levels marked since late April, close to 1.3640-50. As a result, the pair’s upside appears difficult and hence needs a strong boost from the BoC, as well as US data, to cross the stated hurdle, which in turn could propel prices towards the yearly high marked in March around 1.3865. Following that, the late 2022 peak of 1.3980 and the 1.4000 psychological magnet will gain the market’s attention. Meanwhile, the USDCAD pullback may initially aim for the 38.2% Fibonacci retracement of August-October 2022 upside, near 1.3500, ahead of retesting the 200-DMA support of 1.3465. In a case where the Loonie pair remains bearish past 1.3465, the early July swing high of 1.3385 and the 61.8% Fibonacci retracement surrounding 1.3200, also known as the Golden Fibonacci ratio, will be on the seller’s radar. Finally, the yearly low marked in July around 1.3090 acts as the last battle point for the buyers, a break of which won’t hesitate to drag the pair below the 1.3000 psychological magnet. Overall, USDCAD remains bullish but may witness a pullback before the further upside, unless the BoC and US data offer surprises.
by MTradingGlobal
USDCAD has more downside room as Canada inflation loomsUSDCAD remains depressed at the year-to-date levels ahead of Canada inflation and US Durable Goods Orders. It’s worth noting that the Loonie pair bears have little fundamental, as well as technical support unless witnessing a corrective bounce. That said, the oversold RSI appears the first catalyst suggesting a rebound in the pair price. With this, a one-month-old falling trend line, around 1.3165 by the press time, precedes the 61.8% Fibonacci retracement of its August-October 2022 upside, near 1.3210, to restrict the short-term upside of the pair. In a case where the quote remains firmer past 1.3210, the previous support line stretched from November 2022, close to 1.3350, and the piercing of the 50-EMA to the 200-EMA from above near 1.3400, will act as the last defense of the bears. On the contrary, strong Canada inflation and the downbeat US data may allow the USDCAD bears to keep the reins despite an oversold RSI. The same highlights the 1.3000 and the 78.6% Fibonacci retracement level of 1.2990 as the next targets for the Loonie pair bears. Should the pair sellers keep dominating past 1.2990, the September 2022 bottom of near 1.2950 will challenge the sellers before directing the pair towards the late 2022 trough close to 1.2725. Overall, the USDCAD bears are likely to stay in the driver’s seat even if a short-term bounce is very much likely.
by MTradingGlobal
Challenges Ahead for USD/CAD Bulls Last night, the Bank of Canada decided to raise its interest rate by 25 basis points, bringing it to 4.75%. This move came after a pause in the tightening campaign during the two previous meetings. As a result, borrowing costs reached a level not seen in 22 years. Because most of the market, approximately 60%, expected interest rates to remain unchanged, the Canadian dollar (CAD) strengthened against the US dollar (USD) following the news. The USD experienced a decrease of 0.23% against the CAD. The initial reaction in the USD/CAD exchange rate showed an 80-pip drop, bottoming out at 1.3320. However, the possibility of an additional rate increase by the Federal Reserve in July likely limited the losses. The upcoming release of US inflation data next week, coinciding with the Federal Open Market Committee (FOMC) meeting, may provide limited insights into the validity of this possibility. If there are any further upward movements, reaching the area around 1.3400 could present a challenge for those expecting gains. This is because the 50-day, 100-day, and 200-day moving averages (MAs) on the 30-minute chart are all moving in their own lanes, indicating that the short-term price won't be fighting the long-term downtrend just yet. The April 14 low of 1.3300 and the aforementioned 1.3320 could be key if the pairs move lower.
by BlackBull_Markets
USDCAD portrays bearish consolidation on BoC DayUSDCAD remains unimpressive after breaking a seven-week-old horizontal support zone the previous day. That said, the RSI (14) rebounds from oversold territory and hence lures the buyers. However, a clear upside break of the support-turned-resistance area surrounding 1.3410, backed by the Bank of Canada’s (BoC) hawkish tone, becomes necessary to convince buyers. Even so, the 200-SMA hurdle of near 1.3520 and a three-week-old resistance area surrounding 1.3565-70 can check the upside momentum before directing it to the previous monthly peak of around 1.3655 and then to April’s top near 1.3670. On the flip side, BoC is expected to keep the benchmark rates unchanged and hence a dovish tone or a signal to cut rates in futures would be enough to convince USDCAD bears. In that case, an upward-sloping support line from mid-April, close to 1.3350 by the press time, appears the key support for the pair sellers to watch during the quote’s further weakness. Should the Loonie pair sellers manage to keep the reins past 1.3350, the odds of witnessing a downward trajectory towards the yearly low marked in January around 1.3260 can’t be ruled out. To sum up, USDCAD is likely to recover but the upside hinges on how well the BoC can defend hawks despite keeping the monetary policy unchanged.
by MTradingGlobal
USDCAD bears again place their eyes on six-month-old supportUSDCAD again fails to remain beyond the 200-DMA, suggesting another attempt in breaking an upward-sloping support line from November 2022, close to 1.3320 at the latest. The lower highs in the last two months and downbeat oscillators seem to put the Loonie pair bears in a better position this time. Hence, a break of the key support line appears more likely, which in turn can quickly drag the quote to the 50% Fibonacci retracement of April-October upside, near 1.3190. However, a 13-month-old ascending trend line, close to 1.3130, may challenge the bears afterward before giving them control. Meanwhile, the USDCAD pair’s recovery moves may again try to float above the 200-DMA hurdle, around 1.3460 at the latest. In doing so, staying stable above the 1.3500 threshold may become their target before eyeing the falling resistance line from March, around 1.3585. In a case where the bulls manage to remain in the driver’s seat past 1.3585, the previous monthly high surrounding 1.3670 and the late 2022 peak near 1.3705 will be on their radar prior to hitting the yearly top of 1.3860. Overall, USDCAD is likely to remain pressured and is a strong candidate to challenge the key support lines.
by MTradingGlobal
USDCAD stays on bear’s radar as US inflation, BoC loomsBe it a clear downside break of the 10-week-old ascending trend line or sustained trading below the 200-SMA, not to forget the latest fall below one-week-long rising trend line, USDCAD has it all to keep its place on the bear’s radar. The quote’s further downside, however, hinges on the Bank of Canada (BoC) monetary policy decision and the US Consumer Price Index data, as well as the FOMC Meeting Minutes. That said, the monthly low of around 1.3400 and multiple levels marked near the 78.6% Fibonacci retracement of the pair’s February-March upside, close to 1.3390, could test the Loonie pair sellers. In a case where the bears keep the reins past 1.3390, February’s low of around 1.3260 will be in focus. Meanwhile, USDCAD recovery initially needs to cross the weekly support-turned-resistance of around 1.3500 before poking the 50% Fibonacci retracement hurdle, around 1.3560, to convince intraday buyers. Even so, the previous support line from early February, close to 1.3615-20, could challenge the upside momentum. If at all the Loonie pair manages to cross the 1.3620 hurdle, a convergence of the 200-SMA and 38.2% Fibonacci retracement will act as the final defense for bears near 1.3630. Should the quote remains firmer past 1.3630, backed by price-positive fundamentals, a run-up towards 1.3740 and 1.3800 can’t be ruled out. To sum up, USDCAD is well-set for further downside on a key day for the pair traders.
by MTradingGlobal
USDCAD appears well-set for further downside towards 1.3500USDCAD justifies a downside break of a five-week-old ascending trend channel, as well as downbeat RSI and MACD signals, despite marching towards the 61.8% Fibonacci retracement level of October-November 2022 downside, near 1.3690 ahead of the Bank of Canada (BoC) Consumer Price Index (CPI) for February. Should the inflation gauge suggests further rate hikes from the BoC, as it reiterated the readiness to resume the rate hike trajectory if needed, the Loonie pair will have a further downside to trace. In that case, a convergence of the 100-DMA and 38.2% Fibonacci retracement, close to 1.3500, will be a tough nut to crack for the sellers. Following that, the previous resistance line from October 2022 and the 200-DMA, respectively around 1.3430 and 1.3340, may lure the bears. Alternatively, softer inflation data may trigger the USDCAD pair’s corrective bounce. However, the aforementioned channel’s lower line, close to 1.3800 at the latest, holds the key to the buyer’s entry. Should the quote rises past 1.3800, the monthly peak surrounding 1.3865 and the 2022 peak of 1.3977 may test the bulls ahead of directing them to the stated channel’s top line, near the 1.4000 round figure. To sum up, USDCAD is likely to decline further as the key Canadian inflation data looms. Even if the statistics disappoint the Loonie pair bears, the life of a corrective bounce appears limited.
by MTradingGlobal
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USDCAD bulls need to cross 1.3700 for confirmationUSDCAD bulls struggle to defend the two-week-old winning streak ahead of the Canadian GDP data. However, the Loonie pair stays beyond the fortnight-long support line, as well as the key moving averages, to keep buyers hopeful. That said, a horizontal area comprising multiple levels marked since early October 2022, around 1.3700 appears the key upside hurdle for the pair. Following that, a run-up towards the 1.3830 and the 1.3900 threshold could be quick. In a case where the quote remains firmer past 1.3900, the previous yearly top surrounding 1.3975 and the 1.4000 psychological magnet could challenge the upside momentum. It should be noted that the RSI appears overbought but the MACD remains bullish, which in turn highlights the incoming data. Meanwhile, pullback moves may initially poke the immediate support line near 1.3580 before approaching the 100-DMA support of around 1.3500. In a case where the USDCAD remains weak past 1.3500, a gradual downturn toward the 200-DMA close to 1.3260 can’t be ruled out. However, the Loonie bears need a clear downside break of the stated key DMA support to retake control. Overall, USDCAD remains on the bull’s but a pullback can’t be ruled out unless the price remains below 1.3700. That said, strong prints of Canadian GDP could trigger the much-needed retreat of the Loonie pair.
by MTradingGlobal
USDCAD bulls brace for re-entry ahead of crucial Canada eventsFriday’s US jobs report finally offered the much-needed bounce to the USDCAD pair. However, the Canadian employment numbers and Bank of Canada (BoC) Governor Tiff Macklem’s speech makes the current week all the more important for the Loonie pair traders. Also making the quote interesting is the latest piercing of the 1.3430 resistance confluence, comprising the 13-day-old bearish channel’s top line and 200-EMA. It’s worth noting that the oscillators aren’t quite impressive for the bulls and hence the pair buyers must wait for successful trading beyond the 1.3430 hurdle to retake control. Even so, the January 19 swing high near 1.3520 could probe the upside momentum before directing prices towards the previous monthly top surrounding 1.3685. Meanwhile, USDCAD pullback remains elusive unless staying beyond 1.3350 support, a break of which could recall bears targeting the late 2022 bottom surrounding 1.3225. During the fall, the stated descending channel’s lower line, close to 1.3250 may act as an intermediate halt. In a case where the Loonie bears dominate past 1.3225, the 1.3000 psychological magnet may act as a buffer during the south-run targeting September 2022 low near 1.2965. Overall, USDCAD bears are running out of steam as they approach this week’s key data/events.
by MTradingGlobal
USDCAD bears eye 1.3250 strong support on BoC dayUSDCAD sellers hold the reins for the sixth consecutive week so far as traders await the Bank of Canada (BoC) interest rate decision on Wednesday. That said, the BoC’s likely 0.25% rate hike is expected to join the bearish MACD signals and favor the pair bears. However, a convergence of an upward-sloping trend line from June 2022 and a 50% Fibonacci retracement of the quote’s June-October 2022 upside, near 1.3250, appears a tough nut to crack for the sellers. Adding strength to the stated support is the RSI conditions suggesting a recent weakness in downside momentum. Even if the quote breaks the 1.3250 support, the 200-DMA level surrounding 1.3180 could act as the last defense of the Loonie pair buyers. Alternatively, a surprise disappointment from the BoC, either with or without the rate lifts, could trigger the much-awaited USDCAD rebound. In that case, the 100-DMA and previous support line from September 2022, close to 1.3500-10, will be a strong hurdle to watch for the bull’s entry. Following that, a run-up towards the previous monthly high near 1.3700 can’t be ruled out. It should be observed that the pair’s successful rise beyond the 1.3700 resistance can witness multiple challenges between 1.3810 and 1.3830, a break of which could direct buyers towards the previous yearly top marked in October around 1.3975. To sum up, USDCAD is likely to remain bearish unless the BoC offers any negative surprises. However, the downside room is limited.
by MTradingGlobal
USDCAD bears brace for mid-1.3200s with eyes on BOC’s MacklemUSDCAD remains depressed at the lowest levels in six weeks after breaking the 100-DMA as broad US Dollar weakness joins firmer oil prices. Even so, the bears are waiting for the Bank of Canada (BOC) Governor Tiff Macklem’s speech for further directions. That said, the 50% Fibonacci retracement level of June-October upside, near 1.3250, appears the immediate support ahead of an upward-sloping support line from June 2022, close to the 1.3200 round figure. Should the Loonie pair drops below 1.3200, the 200-DMA support level of 1.3150 could act as the last defense of the pair buyers. On the contrary, the 100-DMA hurdle surrounding 1.3480 challenges the short-term recovery moves of the USDCAD pair. Following that, a run-up towards the previous monthly peak of around 1.3700 can’t be ruled out. It’s worth noting, however, that multiple resistances around 1.3800 and 1.3850 could challenge the pair buyers past 1.3700, a break of which could propel prices towards the year 2022 top of 1.3977. Overall, USDCAD is well-set on the bear’s radar despite the latest hesitance in refreshing the multi-day low.
by MTradingGlobal
Ascending triangle teases USDCAD bears ahead of BOC inflationUSDCAD portrays a bearish triangle formation after multiple rejections from the 1.3700 threshold. The sellers, however, await a clear downside break of the stated formation’s support, near 1.3590 by the press time, as well as the Bank of Canada inflation data. A clear break of the stated 1.3590 support, backed by upbeat BOC CPI, could quickly drag the quote to the 200-SMA level surrounding 1.3490-85. Following that, the 23.6% Fibonacci retracement level of the pair’s October-November fall, near 1.3400, could act as an intermediate halt during the south run aiming the theoretical target of 1.3270. In a case where the Loonie pair remains depressed below 1.3270, the previous monthly low, close to 1.3235, will gain the market’s attention. Alternatively, USDCAD needs a successful clearance of the 1.3700 hurdle, as well as softer Canada inflation, to defy the bearish chart formation. In that case, the previous monthly top and 78.6% Fibonacci retracement level around 1.3810 will be in the spotlight. Should the Loonie pair remains firmer past 1.3810, the 1.3900 round figure and November’s high near 1.3975 could entertain buyers before highlighting the 1.4000 psychological magnet. Overall, USDCAD bears are ready for entry as traders await the key data from Canada.
by MTradingGlobal
USDCAD signals further run-up towards 1.3800 ahead of BOCA clear upside break of the 50-DMA and a descending trend line from October’s peak keeps USDCAD bulls hopeful ahead of the Bank of Canada’s (BOC) interest rate hike announcement. That said, the Loonie pair’s upside towards the previous monthly top surrounding 1.3800 appears imminent. However, multiple hurdles near 1.3850 could challenge the quote’s additional north-run, a break of which will direct the buyers towards the yearly high marked in October surrounding 1.3980. Alternatively, USDCAD pullback remains elusive unless the quote remains beyond the 50-DMA level near 1.3565. Also testing the bears is the aforementioned resistance line from October 13, now support near 1.3550. It’s worth noting that the three-week-old ascending support line, close to 1.3430, acts as an additional downside filter for the Loonie pair before directing the bears towards the 1.3230-25 horizontal support comprising July’s high and November’s low. Overall, the USDCAD pair has already flashed a bullish signal before the BOC’s widely anticipated rate hike.
by MTradingGlobal
Bull flag keeps USDCAD buyers hopefulUSDCAD grinds lower inside a bullish chart pattern. That said, the 50-DMA hurdle surrounding 1.3570 guards the Loonie pair’s immediate upside before highlighting the flag’s upper line, around 1.3620. In a case where the quote rises past 1.3620, the odds favoring a run-up toward the monthly high of 1.3976 and then to the 1.4000 psychological magnet can’t be ruled out. Following that, the theoretical run-up challenging the previous peaks marked in 2020 and 2016, near 1.4670, could be expected. Meanwhile, the 50% Fibonacci retracement level of June-October upside, near 1.3250, could restrict short-term USDCAD downside ahead of the tops marked in July and early September, near 1.3220 and 1.3210 in that order. Should the quote drops below 1.3210, the 1.3200 round figure will precede the stated flag’s bottom line, surrounding 1.3115, to challenge the pair’s further downside. It’s worth noting, however, that the bear’s dominance past 1.3115 won’t hesitate to recall August month’s low of 1.2727 to the chart.
by MTradingGlobal