Canadian Dollar Price: USD/CAD Falls to Multi- Month Low Ahead of CAD Data
Canadian Dollar Technical Forecast
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USD/CAD – Bearish Momentum
Alongside this, the Relative Strength Index (RSI) cuurently moves nearby the oversold territory at 32, reflecting the seller's dominance.
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USD/CAD DAILY PRICE CHART (DEC 18, 2017 – OCT 22, 2019) Zoomed Out
USD/CAD DAILY PRICE CHART (AUg 9 – Oct 22, 2019) Zoomed In
From the daily chart, we notice last week USD/CAD tumbled to a lower trading zone 1.3064- 1.3166. Thus, a close below the low end of the zone could press the price towards 1.3008. Further close below this level might send the pair towards 1.2950. That said, the weekly and monthly support levels and areas highlighted on the chart (zoomed in) should be kept in focus.
Its noteworthy that, on Friday USDCAD closed below the neckline of double top pattern. Hence, if the price remains below 1.3134 this could see the pair trading towards 1.2920
On the other hand, any failure in closing below the low end of the zone could reverse the price’s direction sending it towards the high end of the zone. Needless to say, that another close above the aforementioned neckline would negate the double top pattern.
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USD/CAD four hour PRICE CHART (Sep 11– Oct 22, 2019)
Looking at the four- hour chart, we notice since Oct 11 the price has been moving in a downtrend momentum . On Monday, USDCAD opened with an upward gap then failed at the neckline of double top pattern and declined towards it lowest in multiple months.
Therefore, a break below 1.3048 could mean more bearishness towards 1.3008. Although, the weekly support level marked on the chart should be considered. On the flip -side, a break above 1.3146 could push USDCAD towards 1.3185. However, the high end of current trading zone should be watched closely.
See the chart to know more about key levels to monitor in a further bullish/bearish move.
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.