USD/CAD Price Analysis: Hits highest since Feb 2016, focus on weekly close

USD/CAD rose to four-year highs during the overnight trade.
A weekly close above 1.3793 is needed to invalidate a lower highs setup.

Omkar Godbole FXStreet Contributor

USD/CAD is currently trading at 1.3930, having hit a high of 1.3961 during the overnight trade. That was the highest level in over four years.

The daily MACD histogram, an indicator used to identify trend changes and trend strength, is currently reporting the strongest bullish bias since May 2016. To put it another way, bullish sentiment looks to have reached extremes and a pullback could be in the offing.

The pair may fall back to the psychological support at 1.29. Acceptance under that level would expose horizontal support at 1.3796.

The case for a pullback would weaken if the spot rises above the overnight high of 1.3961. That would shift the focus to 1.40.

Focus on the weekly close

A major bullish breakout on the weekly chart would be confirmed if the spot closes Friday above 1.3793 - a bearish lower high created in April 2017.

The 14-week relative strength index is reporting overbought conditions with an above-70 print. The indicator, however, would gain credence if and when signs of seller exhaustion emerge on the price chart.

Weekly chart

Trend: Bullish

Technical levels

USD/CAD

Overview
Today last price	1.3934
Today Daily Change	0.0011
Today Daily Change %	0.08
Today daily open	1.3923

Trends
Daily SMA20	1.3411
Daily SMA50	1.3255
Daily SMA100	1.3219
Daily SMA200	1.3217

Levels
Previous Daily High	1.3961
Previous Daily Low	1.3708
Previous Weekly High	1.344
Previous Weekly Low	1.3315
Previous Monthly High	1.3465
Previous Monthly Low	1.3202
Daily Fibonacci 38.2%	1.3864
Daily Fibonacci 61.8%	1.3805
Daily Pivot Point S1	1.3767
Daily Pivot Point S2	1.361
Daily Pivot Point S3	1.3513
Daily Pivot Point R1	1.4021
Daily Pivot Point R2	1.4118
Daily Pivot Point R3	1.4274

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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