Canadian Dollar Price Analysis: USD/CAD Sellers Await BOC and FED Powell
USD/CAD Price Forecast, Charts and Analysis
- Eyes on Fed Chairman Powell’s testimony before congress and Bank of Canada rates decision tomorrow.
- USD/CAD price trading in a narrow range.
See the Q3 USD and Gold forecasts to learn what is likely to drive price action through this time of the year.
USD/CAD – Sellers Losing Momentum
On Thursday, USD/CAD continued its downtrend eying to break of 1.3000 handle. On the following day the pair bounced towards the high end of the trading zone 1.3064- 1.3126 then failed to close above.
At the start of this week, the price tested the low end and failed to close below, keeping the pair stuck within the aforementioned trading zone.
The Relative Strength Index (RSI) rebounded from the oversold territory and pointed higher towards 40, indicating that the bearish momentum is fading.
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USD/CAD DAILY PRICE CHART (May 30, 2017 – July 9, 2019) Zoomed Out
USD/CAD DAILY PRICE CHART (April 11 – JULy 9, 2019) Zoomed In
Looking at the daily chart we notice USD/CAD rebounded on Thursday from 1.3037 then rallied on the following days testing 1.3126 twice. Therefore, a close above this level may cause a rally towards 1.3166, however; the weekly resistance at 1.3145 needs to be monitored.
Further bullishness might require a close above 1.3166, this could mean the buyers may push the price towards 1.3224, although; the weekly resistance levels underlined on the chart (zoomed in) should be watched along the way.
In turn, a close below 1.3064 may send the price towards 1.3008, however; the weekly support highlighted on the chart would be worth monitoring. Further bearishness could come from a close below 1.3008 and may press USD/CAD towards 1.2920, nonetheless; the weekly support levels highlighted on the chart need to be kept in focus.
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USD/CAD Four-HOUR PRICE CHART (June 20 – JuL 9, 2019)
Looking at the four-hour chart we notice yesterday USD/CAD corrected higher creating a higher low at 1.3049. The pair is eyeing a test of 1.3166 contingent on clearing the July 1 high at 1.3145.
Further break above 1.3166 may see the price even higher at 1.3224, however; the weekly resistance levels marked on the chart need to be considered.
On the other hand, a break below the daily support at 1.3099 could send the price to test yesterday’s low mentioned above, although; the daily support at 1.3064 needs to be watched closely. See the chart to find out how the downtrend would continue with the key levels to know in this scenario.
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.