{"id":21154,"date":"2022-01-20T07:08:00","date_gmt":"2022-01-20T07:08:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=21154"},"modified":"2022-01-20T14:36:13","modified_gmt":"2022-01-20T14:36:13","slug":"usdcad-technical-analysis-loonie-testing-critical-support","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/usdcad-technical-analysis-loonie-testing-critical-support\/","title":{"rendered":"USDCAD Technical Analysis &#8211; Loonie testing critical support"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"21154\" class=\"elementor elementor-21154\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-37ed8e4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"37ed8e4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6f696c6\" data-id=\"6f696c6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4aba142 elementor-widget elementor-widget-text-editor\" data-id=\"4aba142\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The US dollar is trading at its weakest against the Canadian dollar since mid-November, due to rising <a href=\"https:\/\/bit.ly\/3tH1Xab\" target=\"_blank\" rel=\"noopener\">oil prices<\/a> towards $90.00 and a record high CPI inflation report from Canada on Wednesday.<\/p><p>At present, the <a href=\"http:\/\/bit.ly\/334hUb4\" target=\"_blank\" rel=\"noopener\">USDCAD<\/a> pair is testing critical trendline support below the 1.2500 level, opening the door for further downside if further weakness takes hold below the mentioned trendline.<\/p><p>Momentum is to the downside, especially since yesterday\u2019s year-on-year CPI number. On a headline basis, CPI prices actually fell -0.1% month-over-month as expected, but the big news was Canada\u2019s annual inflation rate to 4.8%, which rose to its highest level since 1991.<\/p><p>USDCAD traders have taken the month print with a pinch of salt, focusing instead on the general risk appetite in the market and the fact that the price of crude oil, which is Canada\u2019s most important export, now trading at its highest level since October 2014.<\/p><p>This potent combination of oil trading at an 8-year high and CPI at a 30-year high is likely to further pressure the USDCAD pair down under the 1.2500 level. Both the mentioned factors look like they are going to prompt more downside.<\/p><p>Next week\u2019s FED interest rate decision could give some reprieve for the USDCAD pair, however, as things stand we do need to keep a close watch on the 1.2500 support zone.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8ce2ce8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8ce2ce8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0b4aec3\" data-id=\"0b4aec3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-aece005 elementor-widget elementor-widget-image\" data-id=\"aece005\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"http:\/\/bit.ly\/334hUb4\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"450\" height=\"168\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usdcad-chart-2.jpg\" class=\"attachment-large size-large wp-image-21157\" alt=\"\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ade9645 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ade9645\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d6eced9\" data-id=\"d6eced9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8d5321e elementor-widget elementor-widget-text-editor\" data-id=\"8d5321e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>High levels of bullish sentiment are still being seen towards the USDCAD pair, with some 84 percent of traders currently holding a positive view towards the USDCAD pair. This bullish sentiment bias is a big worry, and it could mean that USDCAD traders are in for a tough week unless we see the mentioned technical close back above the 1.2640 level.<\/p><p><strong>USDCAD Short-Term Technical Analysis<\/strong><\/p><p>The USDCAD pair has formed a notable head and shoulders pattern, with the size of this pattern implying that the USDCAD pair could actually drop by a further 300 points.<\/p><p>Do keep a close watch on the 1.2600 area, as this is the neckline of the bullish pattern. Only gains above the neckline can stop more heavy losses in the USDCAD pair.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fc3f3a2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fc3f3a2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-202fa11\" data-id=\"202fa11\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1cb9dd8 elementor-widget elementor-widget-image\" data-id=\"1cb9dd8\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"http:\/\/bit.ly\/334hUb4\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"936\" height=\"468\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usdcad-4h-1.jpg\" class=\"attachment-large size-large wp-image-21159\" alt=\"\" srcset=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usdcad-4h-1.jpg 936w, https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usdcad-4h-1-360x180.jpg 360w\" sizes=\"(max-width: 936px) 100vw, 936px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-349082e4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"349082e4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-95eced7\" data-id=\"95eced7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-350a5ce0 elementor-widget elementor-widget-text-editor\" data-id=\"350a5ce0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><a href=\"http:\/\/bit.ly\/334hUb4\" target=\"_blank\" rel=\"noopener\">See real-time quotes\u00a0<\/a>provided by our partner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2def6a0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2def6a0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-df078ac\" data-id=\"df078ac\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7f62a91 elementor-widget elementor-widget-text-editor\" data-id=\"7f62a91\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>USDCAD Medium-Term Technical Analysis<\/strong><\/p><p>The USDCAD pair is trading at a critical juncture, and is testing huge trendline support, around the 1.2480 handle. This is the key price zone to watch going forward.<\/p><p>A large, inverted head and shoulders pattern has also formed, which continues to foreshadow more gains in the USDCAD pair. A break under 1.2300 would invalidate the pattern.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d0be0a8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d0be0a8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8021eb9\" data-id=\"8021eb9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-36b046c elementor-widget elementor-widget-image\" data-id=\"36b046c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"http:\/\/bit.ly\/334hUb4\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"936\" height=\"467\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usdcad-1d-5.jpg\" class=\"attachment-large size-large wp-image-21160\" alt=\"\" srcset=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usdcad-1d-5.jpg 936w, https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usdcad-1d-5-360x180.jpg 360w\" sizes=\"(max-width: 936px) 100vw, 936px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-72345939 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"72345939\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7e91416b\" data-id=\"7e91416b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f79d5f1 elementor-widget elementor-widget-text-editor\" data-id=\"f79d5f1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><a href=\"http:\/\/bit.ly\/334hUb4\" target=\"_blank\" rel=\"noopener\">See real-time quotes<\/a> provided by our partner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The US dollar is trading at its weakest against the Canadian dollar since mid-November, due to rising oil prices towards $90.00 and a record high CPI inflation report from Canada on Wednesday. At present, the USDCAD pair is testing critical trendline support below the 1.2500 level, opening the door for further downside if further weakness [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":12123,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[421,42,31],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>USDCAD Technical Analysis - Loonie testing critical support - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/usdcad-technical-analysis-loonie-testing-critical-support\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"USDCAD Technical Analysis - Loonie testing critical support USDCAD Technical Analysis - Loonie testing critical support\" \/>\n<meta property=\"og:description\" content=\"The US dollar is trading at its weakest against the Canadian dollar since mid-November, due to rising oil prices towards $90.00 and a record high CPI inflation report from Canada on Wednesday.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/usdcad-technical-analysis-loonie-testing-critical-support\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-20T07:08:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-20T14:36:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/07\/GettyImages-526111003.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"509\" \/>\n\t<meta property=\"og:image:height\" content=\"305\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"USDCAD Technical Analysis - Loonie testing critical support USDCAD Technical Analysis - Loonie testing critical support\" \/>\n<meta name=\"twitter:description\" content=\"The US dollar is trading at its weakest against the Canadian dollar since mid-November, due to rising oil prices towards $90.00 and a record high CPI inflation report from Canada on Wednesday.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Batchelor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/usdcad-technical-analysis-loonie-testing-critical-support\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/usdcad-technical-analysis-loonie-testing-critical-support\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"USDCAD Technical Analysis &#8211; 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