Canadian Dollar Outlook: USD/CAD Price Eying a Break of 1.3000 Handle
USD/CAD Price Forecast, Charts and Analysis
USD/CAD – Bearish Move with Lower Momentum
On July 3, USD/CAD tested the vicinity discussed in our previous update at 1.3064-60, then broke below yesterday printing its lowest level in nearly eight and a half months, however; the price closed with a Doji pattern indicating to the market’s indecision .
Alongside, the Relative Strength Index (RSI) tested the oversold territory and remained flat in the last two days, indicating to the continuation of the downtrend yet with less impulse.
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USD/CAD DAILY PRICE CHART (July 19, 2017 – July 05, 2019) Zoomed Out
USD/CAD DAILY PRICE CHART (April 2 – JULy 5, 2019) Zoomed In
Looking at the daily chart we notice USD/CAD yesterday closed for the second day in a raw in the trading zone 1.3064 -1.3008, therefore; the pair may fall towards the low end of the zone.
Further close below the low end could send the price even lower towards 1.2920, however; the weekly support levels marked on the chart need to be watched along the way.
On the flip-side, any close above the high end of the aforementioned trading zone may cause a rally towards 1.3124, although; the daily resistance at 1.3102 needs to be watched closely. See the chart for more key levels if the pair closes above 1.3124.
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USD/CAD Four-HOUR PRICE CHART (June 17 – JuL 5, 2019)
Looking at the four-hour chart, we notice on June 18 USD/CAD started a downtrend creating lower lows with lower highs, however; with less momentum since July 1. On Wednesday, the downtrend resumed creating lower lows, nonetheless; we notice a positive divergence between the price and (RSI) indicates to a possible upside move.
On July 1 USD/CAD peaked at 1.3145, therefore; a break above this level (the weekly high) might send the price towards the June 26 high at 1.3196, however; the weekly resistance zone marked on the chart needs to be considered.
On the other hand, any break below 1.3008 may press the price towards 1.2950, although; the weekly support level underlined on the chart should be kept in focus.
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.