USD/CAD Price Analysis: Rebounded Off Key Support As The Downtrend Remains Suspect

10 and one 10 us dollar bill

Image Source: Unsplash

  • The USD/CAD currency pair stalled its downtrend, finding support at 1.3489, just above the 200-day moving average. It was seen trading 0.14% higher.
  • If the pair is able to sustain momentum above the 1.3489 level, it could target resistance levels at 1.3550, 1.3580/90, and the psychological 1.3600 mark.
  • A break below 1.3489 could signal a bearish resumption, exposing the 200-DMA at 1.3463 and the 50-DMA at 1.3413.

The USD/CAD pair's downtrend stalled on Friday after the US dollar found its footing, trimming some of its previous losses against the Loonie. Support emerged at around 1.3489, cushioning the pair’s fall as well as the 200-day moving average (DMA) sitting below that level. The currency pair was seen exchanging hands at around 1.3527, up approximately 0.14%.

From a daily chart perspective, the pair seemed to remain upward-biased despite the recent retracement. Sellers failed to drag prices below the Sept. 1 swing low of 1.3489, which could exacerbate a leg up, and the USD/CAD currency pair could resume its uptrend in the short-term. Hence, the first resistance would be the  1.3550 area, followed by the confluence of the Sept. 12 and 13 highs at around 1.3580/90, immediately followed by the 1.3600 psychological level.

Contrarily, a bearish resumption would occur if the USD/CAD pair were to slump below the 1.3489 level, which could trigger a break in the market structure and expose the 200-DMA at 1.3463. A breach of the latter would expose the 50-DMA at 1.3413, followed by the July 7 daily-high-turned-support at 1.3387.


USD/CAD Price Action – Daily Chart

(Click on image to enlarge)


USD/CAD Technical Levels


More By This Author:

NY Fed Empire State Manufacturing Index Jumps To 1.9 In September Vs. -10 Expected
AUD/USD Price Analysis: Struggles To Extend Recovery As US Dollar Recovers
GBP/USD Sticks To Modest Recovery Gains Around 1.2420-25 Area, Not Out Of The Woods Yet

Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.