Canadian Dollar Technical Analysis Overview: USD/CAD, EUR/CAD
CAD Analysis and Talking Points
- USD/CAD | Risks Tilted to the Upside as 200DMA Supports Pair
- EUR/CAD | Cross Based Out, However, 50DMA Curbs Upside
USD/CAD | Risks Tilted to the Upside as 200DMA Supports Pair
Risks are tilted to the upside for USD/CAD having approached the recent range high (1.3347), while dips in the pair have been well supported from the 200DMA situated at 1.3287, which also roughly coincides with the 50% Fibonacci retracement from the May 2019 – July 2019 drop. Alongside this, momentum indicators as shown by DMI studies highlight that the pair has an upside bias, however, this has eased in recent sessions following the slight correction to 1.33. Topside resistance resides at 1.3347 and 1.3382, in which a break above opens the door to the 1.34 handle. On the downside, failure for the 200DMA to hold could leave the pair vulnerable to a drop towards 1.3250.
USD/CAD Price Chart: Daily Time Frame (Mar 2019 – Oct 2019)
EUR/CAD | Cross Based Out, However, 50DMA Curbs Upside
The cross looks to have based out in the short-term as EUR/CAD makes a firm bounce from 1.4450. That said, gains have been capped by the 50DMA while the bullish momentum signalled by the DMI on the daily time frame has eased. As such, given that the cross remains in a broader downtrend, there is a risk that EUR/CAD revisits the double bottom.
EUR/CAD Price Chart: Daily Time Frame (Oct 2018 –Oct 2019)
--- Written by Justin McQueen, Market Analyst
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