Canadian Dollar Price Forecast - USD/CAD Sliding Towards Short-Term Support
Canadian Dollar (CAD) Price, Chart and Analysis
USD/CAD Drifts into Confluence Support
The Canadian Dollar gained in value against the US Dollar this week after touching a four-month high on Monday. The USD/CAD sell-off comes despite the ongoing strength in the greenback and is more of a reflection of an uptick in the price of oil over the last 5 days. The chart below shows that there has been a sell-off reaction on three prior occasions when USD/CAD hits the 1.3320 – 1.3380 zone and this week’s move may continue that pattern, especially if the oil market strengthens further.
Later in today’s session, a couple of important US data prints, with retail sales released at 13:30 GMT and the provisional University of Michigan sentiment out at 15:00 GMT. Both have the ability to move the US currency.
The daily USD/CAD chart shows a near-term support zone close by between 1.3232 and 1.3236 with the 20-day moving average marginally higher at 1.3242. This is the first time the 20-dma has been tested since January 22. Below here, the 200-dma currently sits at 1.3188. There are a few recent highs on the way back up to 1.3300 which may be difficult to overcome unless the US data drives the greenback higher.
USD/CAD Daily Price Chart (July 2019 - February 14, 2020)
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