USD/CAD Price Analysis: The pair is about to test the key support zone of 1.3485
- USD/CAD is trading 0.72% lower on Wednesday as the greenback sells off.
- The price is testing the 1.35 psychological zone and the next support is pretty big too.
USD/CAD 4-hour chart
USD/CAD has been struggling on Wednesday as oil moves higher and the greenback struggles. The pair is now looking to test lower levels and the 1.35 level is in the way of a move lower. Beyond that, the next support zone is at 1.3485 and this has been an area in the past where the price found both support and resistance.
The market has made consecutive lower highs and lower lows now. This could mean that the downtrend is back on but the major support is the low on the chart at 1.3315,
Looking at the indicators, the MACD is turning bearish as the histogram is in the red. The signal lines are also below the mid-zone as it seems the stars are lining up on the short side. The Relative Strength Index is hitting the oversold zone at the moment. There is still more room to the downside but in the medium term there could be a retracement coming up.
There has also been some fundamental news in Canada about how they are working to resolve economic issues relatied to the COVID-19 pandemic. (click here)
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
