USD/CAD Price Analysis: Struggles at 1.3300 but holds to gains, amid bearish technical pattern

USD/CAD forms a bearish engulfing pattern and struggles to breach the 1.3300 mark, signaling a possible downside.
Pair is currently neutral but might dip further with key support at the 20-day EMA and potentially slide to YTD low.
If 1.3300 is reclaimed, USD/CAD may challenge the 50-day EMA before tackling significant resistance at 200 EMA and 1.3400.

Christian Borjon Valencia FXStreet

USD/CAD bounces off the 20-day Exponential Moving Average (EMA) at 1.3278 after forming a bearish engulfing candlestick pattern, which suggests further downside is expected. Nevertheless, dynamic support spurred a jump in the USD/CAD exchange rates but fell short of cracking the 1.3300 figure. At the time of writing, the USD/CAD is trading at 1.3286 after hitting a daily high of 1.3304.

USD/CAD Price Analysis: Technical outlook

The USD/CAD remains neutral biased, capped on the upside by strong resistance levels, like the 50, 200, and 100-day EMAs, each at 1.3354, 1.3383, and 1.3411, respectively. Additionally, a bearish engulfing candle pattern suggests the pair might dip lower, with the 20-day EMA being the first support at 1.3278.

A breach of the latter will expose July’s 4 daily low of 1.3203. once cleared, the USD/CAD could extend its slide to the year-to-date (YTD) low of 1.3116.

Conversely, if USD/CAD reclaims 1.3300, the 50-day EMA at 1.3354 would be up for grabs. Next, resistance levels would emerge at the 200 EMA before buyers challenge 1.3400. Once broken, the USD/CAD could test the 100-day EMA at 1.3411.

USD/CAD Price Action – Daily chart

USD/CAD

Overview
Today last price	1.3287
Today Daily Change	0.0014
Today Daily Change %	0.11
Today daily open	1.3273

Trends
Daily SMA20	1.3244
Daily SMA50	1.3392
Daily SMA100	1.3489
Daily SMA200	1.3503

Levels
Previous Daily High	1.3387
Previous Daily Low	1.3266
Previous Weekly High	1.3387
Previous Weekly Low	1.3203
Previous Monthly High	1.3585
Previous Monthly Low	1.3117
Daily Fibonacci 38.2%	1.3312
Daily Fibonacci 61.8%	1.3341
Daily Pivot Point S1	1.323
Daily Pivot Point S2	1.3188
Daily Pivot Point S3	1.3109
Daily Pivot Point R1	1.3351
Daily Pivot Point R2	1.343
Daily Pivot Point R3	1.3472

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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