Key Highlights
- USD/CAD started a downside correction from the 1.2965 zone.
- A major bearish trend line is forming with resistance near 1.2820 on the 4-hours chart.
- EUR/USD is facing a major hurdle near the 1.1350 resistance zone.
- Gold price failed to surpass $1,815 and started a downside correction.
USD/CAD Technical Analysis
The US Dollar failed to clear the 1.3000 zone against the Canadian Dollar. USD/CAD started a downside correction and traded below 1.2900.
Looking at the 4-hours chart, the pair failed to stay above the key 1.2880 support level. It even spiked below the 100 simple moving average (red, 4-hours) but stayed well above the 200 simple moving average (green, 4-hours).
The pair is now consolidating above 1.2780 and is facing resistance near 1.2820. There is also a major bearish trend line forming with resistance near 1.2820 on the same chart.
The next major resistance is near the 1.2870 level. It is near the 50% Fib retracement level of the downward move from the 1.2963 swing high to 1.2777 low. A clear move above 1.2870 could start a fresh increase towards the 1.3000 level.
On the downside, an immediate support is near the 1.2780 level. A downside break below the 1.2780 support could spark a move below 1.2765. Any more losses might send the pair towards the 1.2680 level.
Looking at EUR/USD, the pair is still facing a strong resistance near the 1.1350 zone. A clear move above 1.1350 could start a major increase.
Economic Releases
- US Initial Jobless Claims – Forecast 205K, versus 205K previous.
