Canadian Dollar Outlook: Turning Point for USD/CAD Price?
USD/CAD Price Forecast
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USD/CAD – Bullish Development
This Tuesday was a turning point for USD/CAD with the buyers successfuly pushing the price above the July 1 high at 1.3145 on one hand, and the sellers unable to force a close below 1.3126 on the other.
Alongside this, the Relative Strength Index (RSI) pointed higher on Wednesday then crossed above 50 indicating to the buyers gathering momentum for a possible upward move.
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USD/CAD DAILY PRICE CHART (Mar 1, 2017 – July 26, 2019) Zoomed Out
USD/CAD DAILY PRICE CHART (April 19 – JULy 26, 2019) Zoomed In
Looking at the daily chart we notice today USD/CAD has entered the higher trading zone 1.3166 – 1.3224. Hence, a close above the low end of this zone could push the price in the next week towards the high end. However, the resistance area highlighted on the chart (zoomed in) would be worth monitoring.
Further close above the high end of the zone could cause a rally towards 1.3280. Although, the weekly resistance underlined on the chart needs to be considered.
In turn, any failure in closing above the low end of the trading zone may press the price towards 1.3126. Nonetheless, the daily support level underscored on the chart (Zoomed in) should be monitored. See the chart to know more about the lower trading zone with the support level in a further bearish scenario.
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USD/CAD Four-HOUR PRICE CHART (JUNe 19– JuLY 26, 2019)
Looking at the four-hour chart we notice yesterday USD/CAD rebounded from 1.3115 then rallied towards the low end of the aforementioned trading zone. Hence, a break below this level may send the pair towards 1.3064. However, the daily support area highlighted on the chart should be watched closely. See the chart to know more about the following key support levels if the sellers continue pressing the price lower.
On the flip- side, we notice today USD/CAD has rallied to its highest level in over four weeks. Therefore, if the pair shows more bullishness then a break above 1.3214 could push the price towards 1.3250. Although, the high end of the current trading zone needs to be kept in focus. See the chart to find out more about the next significant resistance levels if the rally continues beyond 1.3250.
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.