Talking Points:
- USD/CAD Rebounds Intraday From Monthly Lows
- Intraday Resistance is Found at 1.3373
- Looking for additional trade ideas for US Dollar Forex pairs? Read Our Market Forecast
The USD/CAD is rebounding this afternoon, after initially declining to new weekly lows earlier in the session. Technically this bounce may be seen as significant in the short term, however the pair remains trading under its 10 day EMA (exponential moving average) which is found at 1.3357. Prices are currently using this line as a point of resistance, and if the USD/CAD remains below this point short term momentum may continue to be interpreted as downward.
USD/CAD, Daily Chart with Averages
Intraday analysis shows the USD/CAD bouncing from support found at today’s S2 pivot at 1.3269. This bounce in price now has the pair trading back below its central pivot at 1.3338. A move beyond this point should be seen as significant, as it would open up the USD/CAD to test key points of daily resistance, which includes the R1 pivot at 1.3373. It should be noted that a move to the R1 pivot would have the USD/CAD trading back above the previously mentioned 10 day EMA.
In the event of a bearish price reversal under today’s central pivot, traders should look for a move in price back towards the S1 pivot found at 1.3304. While this value did not add significant support earlier in the session, it now once again becomes a point of interest on this afternoon’s retracement. A breakout back below this point would again show a shift in momentum for the pair, while potentially exposing the USD/CAD to new daily lows.
USD/CAD,30 Minute Chart & Pivots
--- Written by Walker, Analyst for DailyFX.com
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