Failed to Break the Barrier Last Week, USD/CAD Plunged 100 Pips! - Kakiforex | Forex markets for the smart money. Failed to Break the Barrier Last Week, USD/CAD Plunged 100 Pips! Failed to Break the Barrier Last Week, USD/CAD Plunged 100 Pips!

April 14, 2021

Failed to Break the Barrier Last Week, USD/CAD Plunged 100 Pips!

 The bullish momentum on the USD/CAD chart in the Asian session yesterday failed to be sustained after investors saw prices plummet again.


Initially the price has made a rise up to the level of 1.26300 retesting the resistance zone reached last week.


After reaching that zone at the beginning of the Asian session, the price plunged back 100 pips until the end of the New York session.


The bearish situation was driven by the depreciation of the US dollar after the market reaction following the published US inflation data.


The Canadian dollar also strengthened after petroleum exporting countries (OPEC) raised their global oil demand growth forecast for 2021 to 5.95 million barrels a day from 5.89 barrels a day previously.


Analysts saw a signal for a bearish trend on the USD/CAD chart after the price fell below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame of the price movement.



If the price manages to fall lower below the level of 1.25200, the price is expected to head to the support level at 1.24700.


The level is in the RBS (resistance become support) zone which was the focus of March trading.


If the price rebounds past the MA50 barrier, the rise is seen to test the resistance at 1.26000 before going to the resistance zone of 1.26300 again. A higher rise will target the latest highs around 1.26700.