Canadian Dollar Technical Forecast: USD/CAD Weighed Down by Key Technical Levels
USD/CAD Technical Outlook: Neutral
- USD/CAD Price action remains within key technical levels, fundamentals drive price action
- Elevated commodity prices and optimistic job report drive USD/CAD to critical resistance but psychological resistance limits gains
- Canadian Dollar looks to commodities for support but technical resistance remains intact, at least for now
The Canadian Dollar (CAD) has recently remained under pressure as a culmination of fear and rising geopolitical pressures continue to weigh on sentiment.
Preceding the release of high impact economic data, USD/CAD has managed to find provisional support above the key psychological level of 1.2700 which continues to hold firm as resistance for the imminent move.
With rising commodity prices supporting CAD strength, key Fibonacci levels continue to provide both support and resistance for the imminent move with price action hovering above the 23.6% Fibonacci level of the 2020 – 2021 move at around 1.2639. As this level continues to provide a solid foundation of support, CAD bulls will need to drive prices above the 1.3000 threshold with the next level of resistance holding firm at around 1.3400.
Chart prepared by Tammy Da Costa using TradingView
As price action currently remains entrapped between the key Fibonacci levels of the above-mentioned move, the 200 and 50-day moving average have provided additional support at 1.268 and 1.259 respectively while the MACD (moving average convergence/divergence) crosses above the zero line.
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.