USD/CAD Price Analysis: Bears run into support but eye a continuation towards 1.3450

USD/CAD bulls eye a move towards neckline resistance.
Bears seek a continuation and break of support to open 1.3450.

Ross J Burland FXStreet

The Canadian Dollar strengthened to its highest level in nearly four weeks against the Greenback on Wednesday as a recovery in risk appetite supported the currency. However, there are prospects of a correction at this juncture as the following technical analysis illustrates.

USD/CAD weekly chart

As seen, USD/CAD is meeting a support area and leaving behind an M-formation which is a reversion pattern and would be expected to see the price return to the neckline for a retest in due course. The ultimate objective is a retest of the trendline support that meets horizontal support near 1.3250 in the long term.

USD/CAD daily chart

This would see the daily chart´s price action correct up and into the Fibonacci scale. The 38.2% Fibonacci aligns with the nose of the neckline near 1.3650. However, should the beares move in again, then the focus will be on 1.3450 in the medium term.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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