USD/CAD price has been trading within the ascending channel for some time however, last weeks weekly close has closed strongly bearish. It is important to watch the daily timeframe for a potential break and retest over the next week. On the chart is used range height to mark support and resistance areas which work very nicely on this pair. If we do see price show a break and retest of the channel, this could lead price a lot further to the downside with our first weekly target being 1.28300.
On the other hand, a strong US dollar could create interest in the upside potential of the pair and drive price to levels around 1.35.
What's more important, however, is that we are now below the 200SMA, below the long term support line and in a period of a weakening US dollar. That combined could weigh down the chances in favor of a bearish move.
Chart: USD/CAD D1
Thank you for the analysis I'll keep an eye on the currency pair.
ReplyDeleteVery helpful analysis, thank you.
ReplyDeleteIt's range-bound for the moment.
ReplyDeleteIt's very undecided indeed.
ReplyDeleteGood assessment!
ReplyDeleteI agree with your point.
ReplyDeleteGood analysis.
ReplyDelete