USD/CAD Price Forecast: US Dollar Fall Against Canadian Slows Down
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USD/CAD Price Outlook
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USD/CAD – Falling with a Lower Impulse
On Friday USD/CAD resumed its downtrend move printing its lowest level in eight and half months at 1.3018, eyeing to fall to the discussed level in our last update at 1.2920.
The Relative Strength Index (RSI) stopped falling before testing the oversold territory, and created a higher low indicating to a positive divergence and a possible upside move if the price closes today above the aforementioned level.
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USD/CAD DAILY PRICE CHART (JUN 22, 2017 – July 16, 2019) Zoomed Out
USD/CAD DAILY PRICE CHART (April 26 – JULy 16, 2019) Zoomed In
Looking at the daily chart we notice on Friday USD/CAD tumbled to the lower trading zone 1.3008 – 1.3064 however, the price has not tested the low end yet. Hence, a close above the high end may lead the price towards 1.3126 although, the weekly resistance marked on the chart (zoomed in) needs to be watched closely. See the chart to know more about the next significant levels in a further bullish scenario.
In turn, resuming the bearish efforts may require a close below the low end of the aforementioned trading zone. This could send the price towards 1.2950, with a special attention to any close below 1.2920, see the chart (zoomed out).
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USD/CAD Four-HOUR PRICE CHART (JuLY 4 – JuLY 16, 2019)
Looking at the four-hour chart we notice USD/CAD rebounded twice nearby 1.3018 forming a double bottom pattern with the neckline resides at 1.3054. Today, the price broke above the neckline however, rebounded at the high end of the current trading zone mentioned above.
If the price remains above the neckline, it may test again the high end eyeing the July 11 high at 1.3091. The pair could see more bullishness if breaks above the weekly resistance at 1.3103, see the chart to find out where this rally might end with the significant level the price needs to clear.
On the other hand, a break below the 1.3000 handle may send the pair towards1.2976 although, the weekly support marked on the chart needs to be considered. See the chart to find out more about the key support levels the sellers need to monitor if the price continues to fall.
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.