USDCAD Technical Analysis – What’s Next? | Forexlive
On the daily chart below for
USDCAD, we can see that after a huge rally back towards the key support now turned resistance at 1.3664,
the price has stalled and it’s now consolidating between the resistance and the support at 1.3553. The moving
averages have crossed to the upside as the trend changed from bearish to
bullish.
Another thing to note is the
weakness in oil as the global growth is
threatened by restrictive monetary policies and recessionary data. The CAD
being a commodity currency suffers the most in case the risk sentiment turns
sour.
On the 4 hour chart below, we can
see that there were strong sellers ready at the 1.3664 resistance as the price
got pushed down hard. The pullback has stalled at the 1.3553 support and the
38.2% Fibonacci
retracement level where buyers entered the market and pushed
the price back up towards the resistance. There shouldn’t be a clear direction
until the price breaks out on either side supported by a fundamental catalyst. Today we have the ISM Services PMI and
the FOMC policy announcement, so watch out.
On the 1
hour chart below, we can see that there’s a support zone in the 1.3585 price
level where there’s also confluence with the 50% Fibonacci
retracement level. The buyers may lean on that zone for another push to the
upside, while the sellers would want to see the price break below the level to
pile in and try a breakout. A break above the blue counter-trendline may also give the buyers some
conviction for a push towards the resistance or beyond.