Home USD/CAD technical analysis: Retreats closer to a previous resistance breakpoint, around mid-1.3100s
FXStreet News

USD/CAD technical analysis: Retreats closer to a previous resistance breakpoint, around mid-1.3100s

  • The USD/CAD pair struggled to capitalize on its early uptick and is currently placed near the lower end of its daily trading range.  
  • Despite the pullback, the pair has managed to hold its neck above the 1.3145-50 resistance breakpoint now turned support.

The mentioned region coincides with 100-hour SMA and 23.6% Fibo. level of the 1.3565-1.3016 recent downfall, which should now act as a key pivotal point for the pair’s intraday momentum amid absent relevant market moving economic releases.  

Meanwhile, technical indicators on the 1-hourly chart have again started gaining negative momentum but have managed to hold in the positive territory on 4-hourly/daily charts, warrant some caution before placing any aggressive bearish bets.

However, a decisive breakthrough the said confluence support might turn the pair vulnerable to accelerate the slide further towards the 1.3120-15 intermediate support en-route the 1.3100 round figure mark.  

A follow-through weakness below the 1.3100 handle will suggest that the near-term corrective bounce from yearly lows is already over and set the stage for a further downfall back towards testing the 1.3050-40 horizontal support.

On the flip side, bulls are likely to wait for a sustained strength beyond the 1.3200 handle, above which the pair is likely to aim towards testing 100-day SMA, around mid-1.3200s en-route the very important 200-day SMA – around the 1.3295-1.3300 region.

USD/CAD 1-hourly chart

fxsoriginal

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.