USD/CAD Technical Analysis: Snapping two-month losing streak, 50-month MA is key support

USD/CAD is on track to post the first monthly gain since August.
The 50-month moving average has restricted downside since June and is the level to beat for the bears.

Omkar Godbole FXStreet Contributor

USD/CAD is currently trading at 1.3285, representing a 0.92% gain on the monthly opening price of 1.3164.

The pair is on track to post a monthly gain for the first time since August. Back then, the pair had risen by 0.89% only to drop 0.51% and 0.58% in September and October, respectively.

Notably, the sellers have repeatedly failed to keep the pair below the 50-month moving average since June. In fact, similar price action has been observed on multiple occasions over the last two years.

For instance, the pair ended the month below the key average in January 2018 only to rise back sharply in the following month. However, back then, the MA was trending north, indicating a bullish setup.

Currently, the MA is pretty much flatlined, a sign of weakening of bullish momentum. As a result, a big drop could be seen if the MA support at 1.3125 is breached next month.

On the higher side, 1.3565 (May high) is the level to beat for the bulls.

Monthly chart

Trend: Bearish below 50-month MA

Technical levels

USD/CAD

Overview
Today last price	1.3286
Today Daily Change	0.0004
Today Daily Change %	0.03
Today daily open	1.3282

Trends
Daily SMA20	1.3237
Daily SMA50	1.3218
Daily SMA100	1.3218
Daily SMA200	1.3278

Levels
Previous Daily High	1.33
Previous Daily Low	1.3234
Previous Weekly High	1.3328
Previous Weekly Low	1.3156
Previous Monthly High	1.3349
Previous Monthly Low	1.3042
Daily Fibonacci 38.2%	1.3259
Daily Fibonacci 61.8%	1.3275
Daily Pivot Point S1	1.3243
Daily Pivot Point S2	1.3205
Daily Pivot Point S3	1.3176
Daily Pivot Point R1	1.331
Daily Pivot Point R2	1.3339
Daily Pivot Point R3	1.3377

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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