USD/CAD Price Analysis: Remains vulnerable below ascending trend-line, 200-hour SMA


  • USD/CAD was seen consolidating in a range above weekly lows, just below mid-1.3500s.
  • This week’s break below a three-week-old ascending trend-line favours bearish traders.
  • A subsequent fall towards the 200-DMA, near 1.3500 mark, looks a distinct possibility.

The USD/CAD pair extended its sideways consolidative price action through the early North American session and remained confined in a narrow trading band, just above mid-1.3500s.

This comes on the back of this week's slide below a short-term ascending trend-line, extending from lows set on June 10 and June 23. This coupled with the overnight rejection near the mentioned trend-line breakpoint supports prospects for further weakness.

Bearish technical indicators on hourly/daily charts add credence to the bearish break and reinforce the negative outlook. Hence, a subsequent fall towards the very important 200-day SMA, around the key 1.3500 psychological mark, remains a distinct possibility.

Some follow-through selling will be seen as a fresh trigger for bearish traders. The pair might then accelerate the slide towards the 1.3410-1.3400 intermediate support before eventually dropping to three-month lows, around the 1.3315 region set on June 10.

On the flip side, any attempted recovery move might continue to confront a stiff resistance near the 1.3600-1.3620 region. A convincing breakthrough might trigger a short-covering move and assist the pair to aim back towards reclaiming the 1.3700 round-figure mark.

USD/CAD 1-hourly chart

fxsoriginal

Technical levels to watch

USD/CAD

Overview
Today last price 1.3569
Today Daily Change 0.0005
Today Daily Change % 0.04
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

 

 

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