Header help text

Start trading with a free $30

There is no better time than now
Your first deposit is on us


Grab your $30 from XM

Currency
by FXOpen on December 17th, 2018

Loonie traders await action from the BoC in the mid-week: USD/CAD technical analysis

The Loonie continues the downward move following declining oil markets. This week traders await action from the Bank of Canada as well as the US Fed’s long-expected rate hike.

Investor confidence in risk assets is showing a steep downfall as traders fear a growing global economic slowdown and fragile oil prices sees the Canadian dollar stuck at a low level against the greenback.

As the Canadian dollar follows oil prices, shell-shocked energies markets are weakening the CAD as oil prices remain constrained at recent lows.

USDCAD-Chart

The US Dollar started a decent upward move after trading as low as 1.3325 against the Canadian Dollar. The USD/CAD pair traded higher and broke the 1.3350 and 1.3380 resistance levels.

The pair even settled above the 1.3370 level and the 50 hourly simple moving average. A high was formed at 1.3400 and later the price corrected lower towards the 50% Fib retracement level of the last wave from the 1.3337 low to 1.3400 high.

More importantly, there is a solid ascending channel in place with support at 1.3365 on the hourly chart. Therefore, if the pair dips from the current levels, it could find support near the 1.3370 and 1.3365 levels.

On the upside, there is a solid resistance near the 1.3400 level, above which the pair could test the 1.3450 level in the near term.

By FXOpen

FXOpen is a Forex and Cryptocurrency broker founded in 2005 by a group of traders. With over 10 years of experience, the company has established itself as a major Forex broker that continues to expand rapidly across the globe. FXOpen offers the MT4 and MT5 Forex trading platform with a wide range of trading instruments including 100+ FX, CFDs, Indices and Cryptocurrency markets. FXOpen also provides its own PAMM technology allowing clients to benefit from the strategies of professional traders with a proven track record of successful trading. The FXOpen Group also includes the ASIC regulated FXOpen AU in Perth Australia and the London-based FXOpen UK that is regulated by the FCA.

More content by FXOpen

Comments (0 comment(s))