USDCAD calls for an upside reversal after new 33-month low

22 January, 2021

USDCAD stretched its March downtrend to a fresh 33-month low of 1.2588 on Thursday before completing the day with a bullish doji candle. The positive candle formation is an indication of a coming upside breakout, which the price is currently pushing to confirm, as it is recovering towards its 20-day simple moving average (SMA) at 1.2719.

With the RSI distancing itself above its 30 oversold level and the MACD, although negative, hovering above its red signal line, an upside correction seems to be on the cards. Despite that, traders may wait for a close above the 1.2765 resistance region before raising their buying orders towards the 1.2835 barrier and the 50-day SMA. Higher, the bulls may scope to reverse the downtrend through the 1.2900 – 1.2950 region.

In the case the pair fails to attract enough buyers above the 20-day SMA, it may return to the support of 1.2625, which has been successfully curbing downside movements this month. Should sellers breach that floor, the next stop could be around 1.2550 taken from the cluster of lows registered in April 2018, while lower the 1.2400 – 1.2460 territory could be another “buy the dip” opportunity.

Summarizing, USDCAD is looking to stage its next upside correction after charting new lows, where a close above 1.2675 would likely point to further gains. Otherwise, the bears may need to clear the 1.2625 floor to motivate fresh selling.


Source   Presented by XM
USD/CAD Price Analysis: Slides further below 1.2500 mark25 Feb, 2021  

USD/CAD continued losing ground through the first half of the European session. Oversold RSI on short-term charts warrants caution before placing fresh bearish bets....

USD/CAD Trades above 1.27, looks north12 Feb, 2021  

USD/CAD's daily chart show dip demand below 1.27. The 4-hour chart MACD and RSI are biased bullish. USD/CAD is currently trading mostly unchanged...

Canadian jobs data may not dampen spirits4 Feb, 2021  

The loonie may not be brought to tears when Canada releases its first employment report of the year on Friday at 12:30 GMT, as weaker figures are inevitable...


USDCAD retreats towards descending channel26 Jan, 2021  

USDCAD climbed above the short-term descending channel earlier today in the four-hour chart but failed to jump above the 1.2780 resistance, returning lower...

Bank of Canada: Opening the door for a rate cut19 Jan, 2021  

The BoC will conclude its policy meeting at 15:00 GMT Wednesday and there are some whispers in market circles about a micro rate cut. Covid infections have risen...

USDCAD holds under SMAs unable to break bearish shackles15 Jan, 2021  

USDCAD is pushing off multi-year lows but seems to be incapable of shaking off the bearish tone which has grasped the pair for nearly a year, starting back in March 2020...


USDCAD posts losses in Ichimoku cloud12 Jan, 2021  

USDCAD posted losses for the second consecutive period, pulling back from the 200-period simple moving average (SMA) around the 1.2835 resistance and...

USD/CAD struggles for direction, confined in a range below 1.2700 mark7 Jan, 2021  

USD/CAD extended its directionless price move for the second straight session on Thursday. Bullish oil prices underpinned the loonie and kept a lid on any...

USDCAD declines further below descending trend line24 Dec, 2020  

USDCAD has been consolidating losses since the day it plunged from the more than four-year high of 1.4668. Currently, in the very-short-term, the price is...