USD/CAD: US dollar attempts to hold on at 1.31140 support

Denis Joeli Fatiaki Independent Analyst

What happened in the last 24 hrs of the trading session?

USD/CAD: The US dollar fell out of the wedge price pattern as highlighted in yesterday's update, and was unchallenged until it reached 1.31032 support. The pair managed to bounce at 1.31032 and shot up above 1.31448 resistance only to be pushed back to 1.31275 after a few failed attempts to cross over.

What is going on now?

USD/CAD: The US dollar failed at 1.31275, attempted to hold at 1.31140, but now looks like its losing its grip and may fall. If it fails to hold above 1.31140, then it may fall to its 500 EMA and the next support at around 1.30905.

My thoughts on what may happen

USD/CAD: The pair failed many times in the last 24 hours to face the challenge to hang on to its position from falling. It has now reached 1.31140 a critical support point and needs to maintain activities above this point to head back up. If it fails to hold above 1.31140, then it could fall out of the price channel and head down to its 500 EMA line and 1.30095.

The short-term view of the price action in the 60 minutes price chart highlights the direction of the trend and the support and resistance price points

The short-term view of the price action in the four-hour price chart highlights the direction of the trend and the support and resistance price points

Author

Denis Joeli Fatiaki

Independent Analyst

Denis Joeli Fatiaki possesses over a decade of extensive experience as a multi-asset trader and Market Strategist.

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