USD/CAD Price Analysis: Attempts a breakout of the Falling Channel for the third time

USD/CAD is attempting to deliver a breakout of the Falling Channel for the third time.
The Loonie asset has reclaimed the 20-EMA, which indicates that the short-term trend is bullish now.
A break into the bullish range of 60.00-40.00 by the RSI (14) will activate upside momentum.

Sagar Dua FXStreet

The USD/CAD pair has dropped firmly to near 1.3435 after failing to recapture a weekly high around 1.3476 in the early European session. The Loonie asset is following the footprints of the US Dollar Index (DXY), which has surrendered the 103.00 cushion amid a sheer recovery in the risk-on impulse.

S&P500 futures have extended their gains firmly as investors’ risk appetite has improved after the market digested the hawkish interest rate guidance from the Federal Reserve (Fed). Meanwhile, the oil price is struggling to stretch its upside move above $78.50. It is worth noting that Canada is a leading exporter of oil to the United States and higher oil prices will support the Canadian Dollar.

USD/CAD is attempting to deliver a breakout of the Falling channel chart pattern on a two-hour scale, for the third time after two failed breaks due to the absence of strength in the US Dollar bulls. The Loonie is testing the strength of the breakout near 1.3432.

The 20-period Exponential Moving Average (EMA) at 1.3423 is acting as major support for the US Dollar bulls.

Meanwhile, the Relative Strength Index (RSI) (14) is struggling to cross 40.00. A break into the bullish range of 60.00-40.00 will activate upside momentum.

A break above February 7 high at 1.3469 will drive the asset toward January 19 high at 1.3521 followed by January 6 low at 1.3538.

On the flip side, a slippage below Wednesday’s low at 1.3360 will drag the asset toward January 3 low at 1.3321 and February 2 low at 1.3262.

USD/CAD two-hour chart

USD/CAD

Overview
Today last price	1.3432
Today Daily Change	-0.0015
Today Daily Change %	-0.11
Today daily open	1.3447

Trends
Daily SMA20	1.3383
Daily SMA50	1.3494
Daily SMA100	1.3536
Daily SMA200	1.3231

Levels
Previous Daily High	1.3449
Previous Daily Low	1.336
Previous Weekly High	1.3472
Previous Weekly Low	1.3262
Previous Monthly High	1.3685
Previous Monthly Low	1.33
Daily Fibonacci 38.2%	1.3415
Daily Fibonacci 61.8%	1.3394
Daily Pivot Point S1	1.3389
Daily Pivot Point S2	1.333
Daily Pivot Point S3	1.33
Daily Pivot Point R1	1.3478
Daily Pivot Point R2	1.3508
Daily Pivot Point R3	1.3567

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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