FX.co ★ USD/CAD

USDCAD D1 Chart Analysis: During Monday's holiday-light trading session, bids are raised to 1.40971 while the intraday low of USD/CAD is retraced. The Loonie pair uses the 200-SMA and an upward-sloping support line from the previous Wednesday as a starting point. In addition to the cautious environment ahead of significant data/events, holidays in various markets may soon restrict USD/CAD intraday movements. However, the bears appear to be running out of fuel, so there's a strong chance they'll make a comeback. In the scenario that predicts the recovery of the Loonie pair, the aforementioned catalysts—the Fed Minutes and the employment figures in the US and Canada—will thus be responded to more forcefully. On the daily chart, the USD/CAD dropped to fresh two-day lows, barely missing the weekly low of 1.40211. The 20-day Exponential Moving Average (EMA), which was at 1.41071, halted the USD/CAD rally toward the 1.42371 level throughout the course of the preceding five trading days. As the major consolidated prior to the end of the year, the USD/CAD, likewise, began a run of lower highs and lows from mid-December. The Relative Strength Index (RSI), which is in negative territory, keeps USD/CAD sellers keen for the further decline even though the Rate of Change (RoC) shows that selling pressure is lessening. Therefore, if the USD/CAD doesn't clearly break below 1.40221, more losses could happen. The 100-day EMA at 1.39521 would be the next support level after 1.39371 and 1.37481. In an alternative case, the USD/CAD pair's first barrier would be the 20-day EMA at 1.41121. 1.41371 and 1.42371 would be the subsequent resistance levels when they were surmounted.