- USD/CAD struggles in keeping head up above 1.2650 on Tuesday.
- Additional gains for pair if price manages to hold 20-day SMA in intraday session.
- Momentum oscillator indicates flat price movement.
USD/CAD trades with a cautious tone on Tuesday in the early European trading hours. The pair hovers in less than 20-pip movement signaling sluggish price momentum.
At the time of writing, USD/CAD is trading at 1.2650, up 0.01% for the day.
USD/CAD daily chart
-637671894472405284.png)
Technically speaking, the USD/CAD pair finds it difficult to break 1.2650 on the daily chart. USD/CAD came under selling pressure after making a high of 1.2949 almost a month before on August 20.
The descending trendline from the mentioned level act as a resistance barrier for the USD/CAD bulls.
If price is sustained above the 20-day Simple Moving Average (SMA), it could test the 1.2700 horizontal resistance level.
A successful break of the bearish sloping line would confirm the continuation of the fresh upside momentum in the pair and the immediate target would appear at the 1.2750 horizontal resistance level.
Next, USD/CAD bulls would attempt to recapture the high made on August 23 at 1.2833.
Alternatively, if price reverses the direction, it could fall back to the 1.2600 horizontal support level.
Furthermore, the Moving Average Convergence (MACD) indicator trades above midline with a neutral stance. Any downtick in the MACD would trigger a fresh round of selling seeking the next target at the 1.2550 horizontal support level.
USD/CAD bears look for the low made on July 30 at 1.2422.
USD/CAD additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
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.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.