Key Highlights
- USD/CAD started a fresh decline from well above 1.2550.
- A major bearish trend line is forming with resistance near 1.2470 on the 4-hours chart.
- EUR/USD could attempt a decent recovery wave above 1.1650.
- Gold price started a fresh increase above the $1,780 resistance.
USD/CAD Technical Analysis
The US Dollar started a major decline from well 1.2600 against the Canadian Dollar. USD/CAD broke many supports near 1.2550 to move into a bearish zone.
Looking at the 4-hours chart, the pair traded below the 1.2500 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). The pair even broke the 1.2450 support level, and it remains at a risk of more downsides.
An immediate support is near the 1.2400 level. The next major support is near 1.2350, below which there is a risk of a larger decline. In the stated case, the pair could test the 1.2200 support zone.
An immediate resistance on the upside is near the 1.2470 level. The first major resistance is near the 1.2500 level, above which the pair could rise towards the 1.2600 level in the near term.
Looking at EUR/USD, the pair is attempting a recovery, but it might still face hurdles near 1.1650. Besides, GBP/USD could gain pace if it clears the 1.3650 level.
Economic Releases
- US Initial Jobless Claims – Forecast 243K, versus 244K previous.
- US Producer Price Index March 2021 (MoM) – Forecast 0%, versus +0.3% previous.
