USD/CAD Battles for Direction Within Triangle; Bearish Pressures likely
2024.12.06 07:33
- USD/CAD stays on the sidelines ahead of November’s jobs data.
- Bearish pressures likely but sellers need a close below 1.4000.
- USD/CAD is holding a neutral-to-bearish bias
is currently treading water, caught in a neutral symmetrical triangle at the top of the two-month-old uptrend as traders are holding their breath ahead of the release of key US and Canadian jobs data.
The technical indicators suggest the short-term bias is leaning to the downside as the stochastic oscillator is set for a negative reversal and the MACD continues to decelerate below its red signal line. Nevertheless, traders may stay patient until the price breaks above the 1.4075-1.4100 area or falls below 1.4000.
In the event of a bullish breakout, the pair may re-challenge November’s four-year high of 1.4172 and if this proves easy to overcome this time, it could speed up toward the resistance line at 1.4265. Next (LON:), the rally could pause around the 1.4370 region if the 1.4300 psychological mark gives the green light.
On the downside, a step below the 20-day exponential moving average (EMA) at 1.4000 could activate selling orders toward the 1.3945 barrier, while a deeper pullback could take a breather near the 50-day SMA currently at 1.3900. If the bears claim the latter, the downfall could stretch aggressively to 1.3820.
Summing up, USD/CAD is holding a neutral-to-bearish bias, monitoring the 1.4000 and 1.4100 levels, as a break in either direction could determine the next significant move.
