- The US Dollar stages a recovery on risk aversion spurred by the China Covid-19 crisis.
- USD/CAD bounced off weekly lows around 1.3300 and tested the 1.3400 mark.
- USD/CAD Price Analysis: The head-and-shoulders chart pattern remains intact.
The US Dollar (USD) stages a recovery against the Canadian Dollar (CAD) amid a subdued trading session sparked by thin liquidity conditions caused by the observance of the US Thanksgiving holiday. However, China’s Covid-19 cases jumping above 30,000 spurring a risk-off impulse, and US Treasury yields rising, underpinned the USD. At the time of writing, the USD/CAD is trading at 1.3376
USD/CAD Price Analysis: Technical outlook
Delving into the USD/CAD daily chart, the major erased Thursday’s losses, though it faltered to crack the 1.3400 figure after reaching a daily high of 1.3398. Although the US Dollar is buoyant, traders should know that the head-and-shoulders chart pattern is still in play. However, the USD/CAD needs to tumble below 1.3300 and the 100-day Exponential Moving Average (EMA) at 1.3268 to exacerbate a fall toward the head-and-shoulders chart pattern. Otherwise, the USD/CAD might jump above the 1.3500 neckline and invalidate the pattern.
As an alternate scenario, the USD/CAD first resistance would be the 1.3400 figure. A breach of the latter will send the USD/CAD climbing toward the confluence of the head-and-shoulders neckline and the 1.3500 psychological level, followed by the 50-day Exponential Moving Average (EMA) at 1.3566.
USD/CAD Key Technical Levels
|Today last price||1.3376|
|Today Daily Change||0.0038|
|Today Daily Change %||0.28|
|Today daily open||1.3338|
|Previous Daily High||1.3362|
|Previous Daily Low||1.3316|
|Previous Weekly High||1.3409|
|Previous Weekly Low||1.3226|
|Previous Monthly High||1.3978|
|Previous Monthly Low||1.3496|
|Daily Fibonacci 38.2%||1.3334|
|Daily Fibonacci 61.8%||1.3345|
|Daily Pivot Point S1||1.3315|
|Daily Pivot Point S2||1.3293|
|Daily Pivot Point S3||1.327|
|Daily Pivot Point R1||1.3361|
|Daily Pivot Point R2||1.3384|
|Daily Pivot Point R3||1.3407|
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