The pair is testing a key support level within a defined range. The stochastic oscillator is oversold, suggesting potential for a bounce. The next resistance target is around 0.825, the top of the range. However, a break below support could open the door to significant downside. Traders should monitor Canadian Retail Sales data due this afternoon for potential market-moving impact.
Gold filled the previous gap and showed bullish signs on the 4-hour chart, but the daily chart remains bearish. A short position could be justified if lower time frame confirmation appears, particularly if price stalls near recent resistance. Caution is advised—this remains a high-risk setup until directional clarity improves.
Silver has been mirroring gold’s path. Although it was in a downward channel, USD weakness has brought it back to resistance. As with gold, wait for confirmation before acting.
We previously highlighted a symmetrical pennant on USD/CAD, and it played out as a bearish continuation. Price has broken lower, in line with the broader downtrend.
Both continue to grind lower within clearly defined downward channels. The bear trend remains intact, and any rallies are likely to face strong selling pressure unless fundamentals shift.
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