USD/CAD Price Analysis: Shows signs of recovery, trades above the 200-DMA

USD/CAD rises above the 200-day EMA but struggles to crack 1.3400.
Upside risks for the USD/CAD lie above 1.3400, which can trigger a rally toward 1.3500.
USD/CAD failure to crack 1.3400 could pave the way for further losses.

Christian Borjon Valencia FXStreet

The USD/CAD advances after bottoming last Friday at around 1.3300; the pair bounces off and hovers nearby the 1.3400 figure after reaching a high of 1.3420. At the time of writing, the USD/CAD is trading at 1.3395 and is gaining 0.31%.

The USD/CAD dove to new 8-week lows at 1.3300, spurring an increase in the greenback’s demand, even though the Bank of Canada (BoC), in its latest monetary policy, announced the BoC Governing Council discussed raising rates. Nevertheless, current expectations for additional Fed tightening bolstered the US Dollar.

USD/CAD Price Action

Given the backdrop, the USD/CAD is still neutral to downward biased, but it’s testing the upper boundaries of the 200-day Exponential Moving Average (EMA) at 1.3377. In addition, a daily close of the USD/CAD pair above the latter could exacerbate another leg-up in the pair, initially towards a downslope resistance trendline drawn from November 2022 highs that pass around the 1.3430-50 area. But firstly, the USD/CAD buyers need to reclaim 1.3400.

If USD/CAD cracks the 1.3400 figure, the next resistance would be the trendline mentioned above at 1.3430-50. Once cleared, the USD/CAD could threaten the confluence of the 20 and 100-day EMAs, around 1.3497-1.3504, before rallying towards the 50-day EMA At 1.3534.

Conversely, if USD/CAD stays below 1.3400, that could open the door for further downside. That said, the first support would be the 200-day EMA at 1.3377, followed by the April 17 low at 1.3342, before aiming toward the 1.3300 figure.

USD/CAD Daily Chart

USD/CAD Technical Levels

USD/CAD

Overview
Today last price	1.3395
Today Daily Change	0.0024
Today Daily Change %	0.18
Today daily open	1.3371

Trends
Daily SMA20	1.3545
Daily SMA50	1.3563
Daily SMA100	1.3531
Daily SMA200	1.3401

Levels
Previous Daily High	1.3396
Previous Daily Low	1.3301
Previous Weekly High	1.3554
Previous Weekly Low	1.3301
Previous Monthly High	1.3862
Previous Monthly Low	1.3508
Daily Fibonacci 38.2%	1.336
Daily Fibonacci 61.8%	1.3337
Daily Pivot Point S1	1.3316
Daily Pivot Point S2	1.3262
Daily Pivot Point S3	1.3222
Daily Pivot Point R1	1.3411
Daily Pivot Point R2	1.345
Daily Pivot Point R3	1.3505

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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