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USD/CAD Could Resume Upside Unless 1.2765 Fails

Aayush Jindal

Aayush Jindal

Key Highlights

  • USD/CAD started a downside correction from the 1.2965 zone.
  • A major bearish trend line is forming with resistance near 1.2820 on the 4-hours chart.
  • EUR/USD is facing a major hurdle near the 1.1350 resistance zone.
  • Gold price failed to surpass $1,815 and started a downside correction.

 

USD/CAD Technical Analysis

The US Dollar failed to clear the 1.3000 zone against the Canadian Dollar. USD/CAD started a downside correction and traded below 1.2900.

Looking at the 4-hours chart, the pair failed to stay above the key 1.2880 support level. It even spiked below the 100 simple moving average (red, 4-hours) but stayed well above the 200 simple moving average (green, 4-hours).

The pair is now consolidating above 1.2780 and is facing resistance near 1.2820. There is also a major bearish trend line forming with resistance near 1.2820 on the same chart.

The next major resistance is near the 1.2870 level. It is near the 50% Fib retracement level of the downward move from the 1.2963 swing high to 1.2777 low. A clear move above 1.2870 could start a fresh increase towards the 1.3000 level.

On the downside, an immediate support is near the 1.2780 level. A downside break below the 1.2780 support could spark a move below 1.2765. Any more losses might send the pair towards the 1.2680 level.

Looking at EUR/USD, the pair is still facing a strong resistance near the 1.1350 zone. A clear move above 1.1350 could start a major increase.

Economic Releases

  • US Initial Jobless Claims - Forecast 205K, versus 205K previous.