USD/CAD Technical Analysis: Bears back in action amid surging oil prices, now targeting 1.3500 mark
• Having failed to make it through the 1.3660 region, the pair witnessed a sudden turnaround and tumbled to over one-week lows in the last hour.
• A sharp short-covering rally in crude oil prices underpinned Loonie and turned out to be one of the key factors prompting aggressive long-unwinding.
• In the process, the pair confirmed a bearish breakthrough 200-hour SMA and a rectangular chart pattern - the post-Christmas consolidation phase.
• Meanwhile, technical indicators on the 1-hourly chart are already pointing to slightly oversold conditions and might limit further losses, at least for now.
• However, oscillators on the 4-hourly chart have just started gaining negative momentum and also losing traction on the daily chart, pointing to bearish set-up.
• Hence, any attempted bounce is likely to get sold into and a subsequent fall, towards the key 1.3500 psychological mark, now looks a distinct possibility.
USD/CAD 1-hourly chart
Today Last Price: 1.3541
Today Daily change: -41 pips
Today Daily change %: -0.302%
Today Daily Open: 1.3582
Previous Daily SMA20: 1.3523
Previous Daily SMA50: 1.3328
Previous Daily SMA100: 1.3171
Previous Daily SMA200: 1.307
Previous Daily High: 1.3664
Previous Daily Low: 1.3568
Previous Weekly High: 1.4134
Previous Weekly Low: 1.3564
Previous Monthly High: 1.4134
Previous Monthly Low: 1.316
Previous Daily Fibonacci 38.2%: 1.3605
Previous Daily Fibonacci 61.8%: 1.3627
Previous Daily Pivot Point S1: 1.3546
Previous Daily Pivot Point S2: 1.351
Previous Daily Pivot Point S3: 1.3451
Previous Daily Pivot Point R1: 1.3641
Previous Daily Pivot Point R2: 1.37
Previous Daily Pivot Point R3: 1.3736