USD/CAD Technical Analysis: Dollar Trying to Turn the Corner vs CAD
- USD/CAD testing downtrend line from March high
- A break doesn’t secure reversal but gets it started
When I last looked at USD/CAD it was breaking out of a range and leaving behind the 200-day MA, but it wasn’t long after the break that the June low came into play. So far it is holding that threshold and looking to make an attempt on breaking above the trend-line off the March high.
It has yet to break, but if it does then we may be witnessing a trend change, or an extended corrective move higher at the least. A break above the multi-month trend-line will again have a pivotal spot in play in the vicinity of 13500/25, an area which previously held well as support for over a month.
To really get USD/CAD moving back in the other direction a break above the March trend-line and beyond price/200-day resistance will be needed. This means a solid daily closing print above 13524. If this happens we could very well see fresh buying interest come in along with shorts running for cover.
If the March trend-line or the 13500 area continue to hold as resistance and USD/CAD starts to trade lower, then watch the June low at 13315. Should that low break then an important test of a trend-line (~13190) from 2017 could be underway. The trend-line gains its importance by connecting the 2018 and 2019 lows.
USD/CAD Daily Chart (trend-line test)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.