USD/CAD Price Analysis: On the defensive after ascending trendline breakdown

USD/CAD has breached key ascending trendline support on the daily chart.
The pair risks falling to the 200-day SMA support at 1.3495.

Omkar Godbole FXStreet Contributor

USD/CAD has dived out of an ascending trendline connecting June 10 and June 23 lows, validating the bearish view put forward by last week's bull failure at the trendline falling from March highs.

The downside break of the three-week-long rising trendline is backed by a below-50 or bearish reading on the 14-day relative strength index and the bearish crossover of the 50- and 100-day simple moving averages (SMA).

As a result, the pair appears on track to test the 200-day SMA support, currently at 1.3495. At press time, the pair is trading largely unchanged on the day at 1.3560, having put in a high of 1.3575 early Friday.

The bias would turn bullish if the pair clears the multi-month descending trendline hurdle, currently at 1.3667.

Daily chart

Trend: Bearish

Technical levels

USD/CAD

Overview
Today last price	1.356
Today Daily Change	-0.0004
Today Daily Change %	-0.03
Today daily open	1.3564

Trends
Daily SMA20	1.3559
Daily SMA50	1.3773
Daily SMA100	1.3808
Daily SMA200	1.3494

Levels
Previous Daily High	1.3624
Previous Daily Low	1.356
Previous Weekly High	1.3716
Previous Weekly Low	1.3486
Previous Monthly High	1.3802
Previous Monthly Low	1.3316
Daily Fibonacci 38.2%	1.3585
Daily Fibonacci 61.8%	1.36
Daily Pivot Point S1	1.3542
Daily Pivot Point S2	1.3519
Daily Pivot Point S3	1.3478
Daily Pivot Point R1	1.3606
Daily Pivot Point R2	1.3647
Daily Pivot Point R3	1.3669

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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