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USD/CAD Technical Outlook: Running Lower After Support Break

USD/CAD Technical Outlook: Running Lower After Support Break

Paul Robinson, Strategist

USD/CAD Technical Outlook

  • USD/CAD broke trend support last week
  • 200-day and September low are up next as support

USD/CAD Technical Outlook: Running Lower After Support Break

Last week, USD/CAD broke support via a trend-line running higher since the beginning of June, and also broke down below a minor shelf of support created during much of September. This has price running near the 200-day moving average at 12510.

It might be a meaningful level, but hard to say at this time. It is in approximate confluence with the September low at 12493. We could see a bit of volatility if it is going to hold, but if we are to see a big breakdown then momentum shouldn’t slow here.

The next level beyond the above mentioned support, is a swing-low created in July at 12422. After that it gets difficult to find highly impactful price levels, so watching price action and momentum will be the key to determining the possible extent of the slide.

A reversal around support doesn’t necessarily turn things favorable for USD/CAD, as the general tide is running against the pair. It will take some time to turn the broader outlook positive.

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USD/CAD Daily Chart

USD/CAD daily chart

USD/CAD Chart by TradingView

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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.

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