USD/CAD Price Forecast: USD vs Canadian Dollar Nears Key Bullish Levels
USD/CAD Price Technical Forecast
- Bulls push US Dollar against Canadian Dollar to a multi -year high
- Will bulls keep controlling the price action?
On Friday, USD/CAD took off to its highest level in over four years at 1.3995, then retreated after, as some bulls seemed to cut back. Yet, the market closed the weekly candlestick in the green with 2.8% gain. Today, the price has tested 1.4100 handle.
Alongside that, the Relative Strength Index (RSI) remained in overbought territory, highlighting the bullish outlook of the market.
USD/CAD DAILY PRICE CHART (Nov 21, 2018 – Mar 17, 2020) Zoomed Out
USD/CAD DAILY PRICE CHART (Jan 27 – Mar 17, 2020) Zoomed In
From the daily chart, we noticed that yesterday USD/CAD broke above 1.4000 threshold then moved to the current trading zone 1.4013 -1.4118. Today, the pair resumed bullish price action eyeing a test of the high end of it.
Thus, a close above the high end of the zone would probably keep bulls in charge, and may encourage them to push towards 1.4320. Further close above this level could send the pair even higher towards 1.4430. In that scenario, the monthly resistance levels underlined on the chart (zoomed in) should be kept in focus.
That said, any close below the low end of the zone reflects bull’s hesitation. This could lead some of them to exit the market allowing the price to fall towards 1.3950. Further close below that level opens the door for USDCAD to decline further towards 1.3857. Yet, the daily support level and area marked on the chart should be considered.
USD/CAD four hour PRICE CHART (Mar 4 – Mar 17, 2020)
Looking at the four- hour chart, we noticed that last week, USD/CAD had opened with a gap to the upside, then started uptrend move creating higher highs with higher lows.
Thus, a break above 1.4154 may cause more bullishness towards 1.4200. Nevertheless, the resistance level underscored on the chart should be watched closely. In turn, any break below 1.3928 could send USDCAD towards 1.3857. Although, the daily support level printed on the chart should be monitored.
See the chart to find out 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.