USD/CAD Reached Resistance

Strong resistance is standing in the way of the US dollar against the Canadian dollar. The pair reacted bearishly to Friday's trading as market participants pushed the pair to the resistance level at 1.3030. The long term downward trend that started in the beginning of January is still intact.

The pair needs to break 1.3100 in order to invalidate the bearish sentiment. If bears, however, put more pressure to the downside we can see the exchange rate go to the SMAs which are now hovering around 1.2800 - 1.2600.

Fundamentals will most likely play an important role in the pair's future as we are yet to see the unfolding of the trade tariffs impact on the market.

Chart: USD/CAD D1