You are here: Home > articles > Forex > Technical Analysis – USDCAD turns to bearish correction but maintains in upward trend
Technical Analysis – USDCAD turns to bearish correction but maintains in upward trend
August 3, 2018 7:26 amVideo
Latest News
- China’s Q1 GDP growth next on the Asian calendar – Preview April 15, 2024
- Technical Analysis – Goldman Sachs stock gains on strong earnings April 15, 2024
- Trading Signals for ETH/USD (Ethereum) for April 15-17, 2024: buy above $3,125 (200 EMA – 2/8 Murray) April 15, 2024
- Analysis for EUR/USD on April 15th. Monday – a tough day for the euro April 15, 2024
- GBP/USD: trading plan for the US session on April 15th (analysis of morning deals) April 15, 2024
- EUR/USD: trading plan for the US session on April 15th (analysis of morning deals). Euro is at an impasse April 15, 2024
- GBP/USD: Will sterling hold steady against dollar? April 15, 2024
- Technical Analysis – USDJPY rallies to another fresh 34-year high April 15, 2024
- Will Netflix earnings take the share price closer to its record highs? – Stock Markets April 15, 2024
- EUR/USD. April 15th. Bulls panic and retreat from the market April 15, 2024
- GBP/USD. April 15th. The dollar gains confidence April 15, 2024
- Weekly forecast based on simplified wave analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, AUD/JPY, and the US Dollar Index April 15, 2024
- XM’s Heartfelt Ramadan Iftar Support April 15, 2024
- Weekly forecast based on simplified wave analysis of EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, and Gold on April 15th April 15, 2024
- Technical Analysis – US 500 reverses towards 123.6% Fibonacci April 15, 2024
- Market Comment – Iranian attacks put markets on edge, but fallout limited April 15, 2024
- XM and Human Initiative Spread Hope to Flood Disaster Evacuees in Demak April 15, 2024
- Weekly Technical Outlook: 15/04/2024 – GBPUSD, USDJPY, AUDUSD April 15, 2024
- Forex forecast 04/15/2024: EUR/USD, GBP/USD,USD/CAD, USDX and Bitcoin from Sebastian Seliga April 15, 2024
- Weekly Technical Outlook – GBPUSD, USDJPY, AUDUSD April 15, 2024
USDCAD formed a fresh seven-week bottom at 1.2974 on August 1 in the daily timeframe after the downfall below the strong obstacle of the 23.6% Fibonacci retracement level of the upleg from 1.2060 to 1.3385, around 1.3074. The pair seems to be in a bearish correction mode as the technical indicators are confirming the scenario for a possible downside pressure.
The RSI and the MACD have both weakened, with the former sloping slightly up below the 50 level and the latter easing below its red trigger and zero lines. Also, the 20- and 40- simple moving averages (SMAs) are ready to record a bearish crossover in the short-term.
Should the price decline further, traders could look for support at the 38.2% Fibonacci region near 1.2880. A fail attempt to hold above this level could open the door for the 50.0% Fibonacci, which stands near the 1.2730 barrier. Even lower, the area near the 61.8% Fibonacci and the medium-term ascending trend line could be another target for the bears.
On the upside, the zone within the 1.3074 and 1.3110, outlined by the 23.6% Fibonacci and the moving averages, could provide immediate resistance. Beyond this area, resistance could then run towards the 1.3290 price level, taken from the peak on July 19. A bullish rally above this hurdle could open the way for the one-year high of 1.3385.
Having a look at the bigger picture, dollar/loonie has been trading within an ascending movement since September 2017, but in the short-term, the price seems to be in a retracement mode over the last five weeks.
Related Posts: