USD/CAD Price Analysis: Stalled Its Rally At The 100-DMA, Dropped Beneath 1.3400

10 and one 10 us dollar bill

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USD/CAD Highlights

  • The USD/CAD currency pair finished Friday’s session with gains, though it faltered to clear the 1.3400 level.
  • It appears the pair may be exposed to selling pressure below the 1.3400 level.

The USD/CAD currency pair prolonged its weekly losses and tumbled for the fourth consecutive week, losing around 0.36%. However, the USD/CAD pair did move up by approximately 0.22% on Friday.

After the University of Michigan (UoM) Consumer Sentiment release showed that sentiment improved, it weighed on the US dollar. Therefore, the USD/CAD pair was recently seen trading at around 1.3393 on Friday, below its opening price by nearly 0.37%.


USD/CAD Price Analysis: Technical Outlook

Once the USD/CAD pair dropped below the 100-day Exponential Moving Average (EMA) at 1.3425, it was all the excuse sellers needed to drag the exchange rate below the 1.3400 mark. The Relative Strength Index (RSI) has recently been seen in bearish territory, suggesting that sellers are in charge.

The Rate of Change (RoC) shows sellers are gathering momentum, as they outweighed buyers in Friday’s session, though it wasn’t enough to keep the pair in the green.

The USD/CAD pair's first support level would be the Nov. 24 daily low of 1.3316. A breach of the latter would expose the 200-day Exponential Moving Average (EMA) at 1.3239, followed by the 1.3200 figure.

On the other hand, the USD/CAD pair's first resistance would be the 1.3400 level. Once cleared, the bear’s next line of defense would be the 100-day EMA at 1.3425, ahead of the confluence of the 20-day EMA and the 1.3500 mark.


USD/CAD Key Technical Levels


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