USD/CAD Price Analysis: CAD holds up as the greenback strengthens elsewhere


  • USD/CAD trades -0.24% lower despite USD strength across the G6.
  • Canadian GDP beat consensus estimates of 3.5% to print at 4.5%.

USD/CAD 1-hour chart

USD/CAD has moved lower overall in the session on Friday. The main reason for the CAD strength was the GDP reading where the data point beat analyst forecasts. Although Canadian GDP bounced back in May, it was still 15% below where it was before COVID-19. Construction, manufacturing and retail sectors led the charge higher. Statistics Canada noted 17 of the 20 sectors of the economy it tracks improved, but goods-producing industries bounced back especially strongly, up 8%. The service sector's gain was comparatively lower, at 3.4%.

Looking at the chart, there seems to be a "basing" or consolidation pattern at relatively low levels. The orange trendline has been taken from the weekly chart and was a resistance level on 25th June 2018 and again on 2nd September 2019. If the oil price continues to struggle then there could be another test higher next week. The next resistance level on the way up is holding at the green line near 1.3446.

The indicators are still looking bearish. The MACD histogram is red and the signal lines are still below the mid-level indicating this is still a downtrend. The Relative Strength Index is also looking depressed. Overall the pair is still in a firm downtrend but if the green resistance zone breaks the price would make a higher low higher high pattern and that could be a sign of a trend change.

USD/CAD Technical Analysis

Additional levels

USD/CAD

Overview
Today last price 1.3391
Today Daily Change -0.0032
Today Daily Change % -0.24
Today daily open 1.3423
 
Trends
Daily SMA20 1.35
Daily SMA50 1.3567
Daily SMA100 1.3826
Daily SMA200 1.3523
 
Levels
Previous Daily High 1.346
Previous Daily Low 1.3334
Previous Weekly High 1.36
Previous Weekly Low 1.3352
Previous Monthly High 1.3802
Previous Monthly Low 1.3316
Daily Fibonacci 38.2% 1.3412
Daily Fibonacci 61.8% 1.3382
Daily Pivot Point S1 1.3351
Daily Pivot Point S2 1.3279
Daily Pivot Point S3 1.3225
Daily Pivot Point R1 1.3477
Daily Pivot Point R2 1.3531
Daily Pivot Point R3 1.3603

 

 

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