- USD/CAD gained strong follow-through traction for the second consecutive session on Monday.
- The momentum stalled near the around the 1.2800 mark, or 200-period SMA on the 4-hourly chart.
- Bulls might wait for a sustained move beyond the mentioned barrier before placing fresh bets.
The USD/CAD pair built on last week's goodish rebound from multi-year lows and gained strong follow-through traction for the second consecutive session on Monday.
Bulls, however, struggled to capitalize on the momentum and faced rejection near the 1.2800 confluence resistance. The mentioned barrier comprises of 200-period SMA on the 4-hourly chart and a descending trend-line, extending from mid-November.
Meanwhile, technical indicators on hourly charts have been gaining positive traction but are yet to confirm a bullish bias on the daily charts. This, in turn, warrants some caution before positioning for any further appreciating move.
Hence, it will be prudent to wait for some follow-through buying beyond the 1.2800 mark pivotal point in order to confirm that the USD/CAD pair has bottomed out in the near-term. This, in turn, will be seen as a fresh trigger for bullish traders.
Any further positive move is likely to confront resistance near monthly swing highs, around the 1.2835 region. A sustained strength above will be seen as a fresh trigger for bullish traders and push the USD/CAD pair towards the 1.2900 mark.
The momentum could further get extended towards an intermediate resistance near the 1.2955 region, above which the USD/CAD pair seems all set to aim back towards conquering the key 1.3000 psychological mark.
On the flip side, immediate support is pegged near the 1.2740-35 horizontal zone. A convincing break below might turn the USD/CAD pair vulnerable to break below the 1.2700 mark and slide further towards testing the next relevant support near the 1.2670-65 region.
USD/CAD 4-hourly chart
-637465767190091080.png)
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.