US Dollar Price Eying FOMC Meeting – USD/CAD Price Important Resistance to Watch
USD/CAD Price Outlook, Charts and Analysis
- Eyes on Fed rate decision for US Dollar and Canadian CPI numbers due to release tomorrow.
- USD/CAD price rallies towards the consolidation zone.
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USD/CAD – Back to the Old Trading Range
On Jun 10 , USD/CAD stopped its downtrend move at the level discussed in our previous article1.3250. The price rallied and closed on Friday within the old consolidation zone (1.3377 – 1.3516).
Alongside, the relative Strength Index (RSI) pointed higher and crossed 50 on Friday highlighting a possible start of an uptrend. Since then the oscillator has remained flat.
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USD/CAD DAILY PRICE CHART (FEB 13, 2019 – JUn 18, 2019) Zoomed In
USD/CAD DAILY PRICE CHART (DEC 9, 2016 – JUnE 18, 2019) Zoomed Out
Looking at the daily chart we notice USD/CAD eying the higher end of the mentioned consolidation zone however, the pair needs to clear 1.3457. Therefore, any failure to close above this level may send the price to retest 1.3377.
Its worth noting that any close below 1.3377 may lead USD/CAD towards 1.3289. Although the weekly support levels at 1.3358 and 1.3332 should be watched closely.
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USD/CAD Four-HOUR PRICE CHART (Jun 3, 2019 – Jun 18, 2019)
Looking at the four-hour chart, we notice on Jun 11 USD/CAD found support at 1.3250 and started an uptrend creating higher highs with higher lows. However, since the start of this week this trend has paused reflecting bulls’ reluctance to continue pushing higher.
Mentioned uptrend could start to accelerate if USD/CAD breaks above 1.3457 this could lead the pair towards 1.3493 however, weekly resistance level at 1.3476 need to be kept in focus.
On the other hand, the pair’s outlook could shift if USD/CAD breaks below 1.3393 (the weekly low). This suggests the price trade even lower towards 1.3358 contingent on clearing the weekly support at 1.3377. See the chart for more key levels if the selloff continues below 1.3358.
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.