Canadian Dollar Price: USD/CAD Hammered at Resistance – Now Eyes the Support
USD/CAD Price Forecast
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USD/CAD – Stalled Upward Move
Last week USD/CAD Broke above 1.3200 price then spiked to its highest level in 7 weeks at 1.3266. However, the pair slipped back and closed with a Doji Pattern nearby 1.3200 handle, reflecting the buyer's indecision to keep rallying the price.
Alongside this, the Relative Strength Index (RSI) remained flat around 57 indicating to a paused upward momentum.
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USD/CAD DAILY PRICE CHART (Jan 10, 2017 – AUG 6, 2019) Zoomed Out
USD/CAD DAILY PRICE CHART (April17 – AUG 6, 2019) Zoomed In
Looking at the daily chart, we notice yesterday USD/CAD closed with another Doji pattern, indicating to a clear intention from the sellers to lead the price.
Today, the pair eyes the low end of the current trading zone 1.3166 – 1.3256. Hence, a close below the low end may press the price lower towards 1.3124. Nonetheless, the weekly support underscored on the chart (zoomed in) should be kept in focus. Further close below 1.3224 may see the price even lower towards 1.3064. The weekly support area and level highlighted on the chart would be worth monitoring.
In turn, any continuation of the stalled bullish move may require a close above the high end of the zone. This may push the price towards 1.3357. Although, the weekly resistance marked on the chart should be watched along the way, with special attention to 1.3284.
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USD/CAD Four-HOUR PRICE CHART (JUly 15 – AUg 6, 2019)
Looking at the four-hour chart, we notice yesterday USD/CAD started a sideways move creating lower highs with higher lows. Hence a break above 1.3256 could revisit the upward move sending the price towards 1.3284. Although, the August 2 high underlined on the chart needs to be considered. See the chart to know more about the next significant resistance levels in a further bullish scenario.
On the other hand, its worth noting the importance of the uptrend line originated from the July 22 low at 1.3040. Thus, any break below 1.3144 may lead the price towards 1.3110. However, the weekly support at 1.3124 needs to be monitored. Look at the chart to find out more about another possible point the price may break below the uptrend line, with the weekly support levels .
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.