Even though Canadian dollar has recovered some of its losses from the previous session, ADS Securities’ analysts still see a Bearish USDCAD below 1.3355.
4 April, ADS Securities – The Canadian Dollar traded significantly lower against its US counterpart in the previous session weighed down by the weakness in crude oil prices. However, it trimmed some of its losses later following a report that the Canadian manufacturing sector expanded in March while employment touched a five-year high level.
Bearish USDCAD below 1.3355
At present, the pair is trading with a negative bias, hinting at bearish momentum in the coming session. Also, a recent signal line crossover from above by the MACD indicator further validates the above view. Meanwhile, Canada’s trade data for February would be a key economic indicator to be watched out for.
Key technical support is placed at the 1.3370 level, followed by the 1.3360 and 1.3355 where EMA 55 is situated. A breach below the latter might trigger potential bearishness in the pair. On the other hand, key resistance is situated at the 1.3390 level, followed by the 1.3400 and 1.3410 levels.
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