USD/CAD Price Analysis: Stalled its rally at the 100-DMA, dropped beneath 1.3400
- USD/CAD finished Friday’s session with gains, though it faltered to clear 1.3400.
- USD/CAD Price Analysis: Exposed to selling pressure below 1.3400.
The USD/CAD prolonged its weekly losses and tumbled for the fourth consecutive week, losing 0.36%, but on the day, the USD/CAD is up 0.22%. After the University of Michigan (UoM) Consumer Sentiment release showed that sentiment improved, it weighed on the US Dollar (USD). Therefore, the USD/CAD is trading at 1.3393, below its opening price by 0.37%.
USD/CAD Price Analysis: Technical outlook
Once the USD/CAD dropped below the 100-day Exponential Moving Average (EMA) at 1.3425, it was the seller’s excuse to drag the exchange rate below the 1.3400 mark. The Relative Strength Index (RSI) is still in bearish territory, suggesting that sellers are in charge. The Rate of Change (RoC) shows sellers are gathering momentum, as they outweighed buyers in Friday’s session, though it wasn’t enough to keep the pair in the green.
The USD/CAD first support level would be the November 24 daily low of 1.3316. A breach of the latter will expose the 200-day Exponential Moving Average (EMA) at 1.3239, followed by the 1.3200 figure.
On the other hand, the USD/CAD first resistance would be 1.3400. Once cleared, the bear’s next line of defense would be the 100-day EMA at 1.3425, ahead of the confluence of the 20-day EMA and the 1.3500 mark.
USD/CAD Key Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
