USD/CAD Price Analysis: Snaps two-day winning streak above the 1.3500 mark


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  • USD/CAD recovery loses steam near 1.3510 ahead of the Canadian PMI data. 
  • The pair resumes its uptrend above the key EMA; RSI indicator is above the 50.0 midlines. 
  • The first upside target is seen at 1.3545; the initial support level is located at 1.3460.

The USD/CAD pair loses traction near the intraday low during the early European trading hours on Tuesday. The decline of the US Dollar (USD) acts as a headwind for the pair. Later on Tuesday, the Canadian Ivey Purchasing Managers Index (PMI) for January will be due, which is estimated to ease to 55.0 in January from 56.3 in December. At press time, USD/CAD is trading at 1.3510, down 0.22% on the day.

Technically, USD/CAD resumes its uptrend and holds above 100-period Exponential Moving Averages (EMA) on the four-hour chart. Furthermore, the Relative Strength Index (RSI) stands above the 50.0 midlines, hinting that further upside looks favorable. 

The first upside barrier for USD/CAD will emerge near a high of January 5 at 1.3545. Any follow-through buying above the latter will see a rally to the upper boundary of the Bollinger Band at 1.3569. A sustained break could take the pair to a high of December 12 at 1.3618, followed by a high of November 27 at 1.3711. 

In the case of a bearish trading environment, the initial support level is seen near a high of February 1 at 1.3460. The next downside target is located near the 100-period EMA at 1.3443. The additional downside filter to watch is 1.3395 (low of January 20), en route to 1.3365 (low of February 2), and finally at 1.3347 (the lower limit of the Bollinger Band).

USD/CAD four-hour chart

 

USD/CAD

Overview
Today last price 1.3511
Today Daily Change -0.0029
Today Daily Change % -0.21
Today daily open 1.354
 
Trends
Daily SMA20 1.3449
Daily SMA50 1.3427
Daily SMA100 1.3553
Daily SMA200 1.3477
 
Levels
Previous Daily High 1.3544
Previous Daily Low 1.346
Previous Weekly High 1.3476
Previous Weekly Low 1.3359
Previous Monthly High 1.3542
Previous Monthly Low 1.3229
Daily Fibonacci 38.2% 1.3512
Daily Fibonacci 61.8% 1.3492
Daily Pivot Point S1 1.3486
Daily Pivot Point S2 1.3431
Daily Pivot Point S3 1.3402
Daily Pivot Point R1 1.3569
Daily Pivot Point R2 1.3599
Daily Pivot Point R3 1.3653

 

 

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