Bearish Momentum Sends USD/CAD Tumbling Through the Consolidation Zone
USD/CAD Price Outlook, Charts and Analysis
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USD/CAD – Breaks Below the Congestion Area
On June 5, USD/CAD resumed its bearish price action testing the lower end of the wide trading range (1.3377 – 1.3517). However, the bears succeeded in their second attempt on the following day to force a close below 1.3377.
The relative Strength Indicator (RSI) remained below 50 highlighting the bearishness outlook of USD/CAD.
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USD/CAD DAILY PRICE CHART (Jan 25, 2019 – JUN 7, 2019) Zoomed In
USD/CAD DAILY PRICE CHART (MAR 2, 2018 – JUN 7, 2019) Zoomed Out
Looking at the daily chart we notice today that USD/CAD has tested the May 22 low at 1.3357 eying the April 11 Low at 1.3335. If the bears continued selling the pair could fall towards 1.3286.
A further bearishness sentiment may send the price towards 1.3218. Weekly Supports at 1.3274 the April 17 Low and 1.3250 the March 19 low must be watched.
On the other hand, a close above 1.3377 would return USD/CAD to its old trading range mentioned above. Daily resistance levels at 1.3410 and 1.3457 need to be in focus.
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USD/CAD Four-HOUR PRICE CHART (April 10, 2019- JUN 7, 2019 )
Looking at the four-hour chart, today the price printed its lowest level in nearly seven weeks at 1.3346. Any bearishness below the April 22 Low at 1.3335 may lead the price to swing lower towards 1.3286. However, weekly and daily supports at 1.3317 and 1.3306 are worth monitoring.
On the flipside, a break above 1.3377 could start a rally towards 1.3410. Daily resistance at 1.3400 needs to be considered.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.