USD/CAD Price Analysis: Bullish engulfing candle emerges, as buyers eye 1.3700

USD/CAD snaps three days of losses, forming a bullish engulfing candle pattern
USD/CAD Price Analysis: A decisive break above 1.3600 exposes 1.3700; otherwise, a fall to 1.3500 is on the cards.

Christian Borjon Valencia FXStreet

The USD/CAD hurdles the 20-day Exponential Moving Average (EMA) at 1.3580, back above the 1.3600 threshold for the third time in the week, as the pair formed a bullish engulfing candle pattern. As the Asian session begins, the USD/CAD is trading at 1.3601, registering minimal gains of 0.02%.

USD/CAD Price Analysis: Technical outlook

From a daily chart perspective, the USD/CAD pair remains neutral-to-upward biased after peaking twice at around 1.3704, forming a double top. Nevertheless, failure to extend its losses below the 50-day EMA at 1.3532 exacerbated a rally above 1.3600, as the USD/CAD looks poised to re-test the 1.3700 mark ahead of the next year. Even though the Relative Strength Index (RSI) is in bullish territory but almost flat, and the Rate of Change (RoC) suggests that sellers are losing momentum, the USD/CAD might consolidate on either side of the 1.3600 mark. Also, the lack of economic data through the week’s reminder might refrain traders from opening fresh bets in the USD/CAD pair.

If the USD/CAD decisively clears 1.3600, the next resistance would be the 1.3700 figure. Break above will expose November’s high of 1.3808, ahead of the YTD high of 1.3977. As an alternate scenario, the USD/CAD first support would be the 20-day EMA at 1.3580, followed by the 50-day EMA at 1.3532, ahead of the 1.3500 figure.

USD/CAD Key Technical Levels

USD/CAD

Overview
Today last price	1.3604
Today Daily Change	0.0085
Today Daily Change %	0.63
Today daily open	1.3519

Trends
Daily SMA20	1.359
Daily SMA50	1.3537
Daily SMA100	1.3421
Daily SMA200	1.3106

Levels
Previous Daily High	1.3585
Previous Daily Low	1.3484
Previous Weekly High	1.3704
Previous Weekly Low	1.3563
Previous Monthly High	1.3808
Previous Monthly Low	1.3226
Daily Fibonacci 38.2%	1.3523
Daily Fibonacci 61.8%	1.3546
Daily Pivot Point S1	1.3474
Daily Pivot Point S2	1.3429
Daily Pivot Point S3	1.3374
Daily Pivot Point R1	1.3574
Daily Pivot Point R2	1.363
Daily Pivot Point R3	1.3675

Author

Christian Borjon Valencia

FXStreet

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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