Market news
07.07.2022, 04:48

USD/CAD Price Analysis: Pullback remains elusive beyond 1.2885 support confluence

  • USD/CAD snaps two-day uptrend, remains pressured inside immediate trading range near two-year high.
  • Convergence of monthly support line, previous resistance from mid-June, restricts short-term downside.
  • Bulls need to cross two-month-old resistance to retake control.
  • Multiple failures to cross immediate hurdle, RSI conditions hint at further weakness.

USD/CAD stays depressed around the intraday low of 1.3012 during the first negative daily performance in three. In doing so, the Loonie pair extends pullback from the upward sloping resistance line from May.

Given the RSI pullback from overbought territory joining the recent profit-booking of the USD/CAD prices, the quote is likely to extend the short-term weakness.

However, a confluence of the one-month-old support line joins descending trend line from June 17 to highlight 1.2885 as the key support. Also acting as a downside filter is the 200-SMA level surrounding 1.2820.

Alternatively, an ascending resistance line from May, near 1.3080, guards the immediate upside of the USD/CAD pair.

Following that, the 1.3100 threshold can act as an additional filter to the north before directing the buyers towards the late November 2020 highs near 1.3170.

Overall, USD/CAD retains its uptrend unless breaking 1.2885 level. However, the short-term pullback can’t be ruled out.

USD/CAD: Four-hour chart

Trend: Limited downside expected

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location