USDCAD bulls gained momentum but failed to sustain further after the U.S. Dollar Index fell to 100.00. USDCAD bearish pressure may continue further in the coming days. Let’s check USDCAD Technical Analysis for more levels and insights.
March 26, 2020 | AtoZ Markets – USDCAD is currently residing near 1.4120 area and declining. After rejecting 1.4650 key resistance area, which is January 2016 high, the bears pushed the price lower in the process. As per the current scenario, USDCAD Bearish pressure may continue further at least towards 1.3780, which is also 61.8 Fibo level.
USDCAD Bearish Pressure Quite Strong to Sustain Further
USDCAD is currently trading at 1.4120 area and quite impulsive with the recent Bearish momentum. Moreover, the price has gained almost 38.2% of the recent bullish trend. After breaking the dynamic level of 20 EMA, the price became aggressive, and USDCAD Bearish pressure may decline further in the days ahead.
Image: USDCAD 4 Hour Chart
According to the 4-hour chart, the Bears are pushing the price lower after USDCAD faced resistance at 1.4650 area. The price is currently residing near 1.4120 area after breaking below the Kumo cloud. As per the current price action, USDCAD may decline further towards 1.3780 support area for a retracement. So, if the price reaches at 1.3780 area and bounces higher with an impulsive Bullish H4 close, the Bullish trend may continue further higher.
Furthermore, the dynamic level of 20 EMA is residing above the current price, along with the Kijun line and Tenkan line. The dynamic level may act as a strong resistance and push the price lower. The Kijun and Tenkan lines may work as a confluence to the dynamic level in the process.
Moreover, the MACD lines are gradually sloping down after breaking below the 0.00 level. Besides, the histogram making a Bearish convergence as the price declining continues.
USDCAD Bullish Trend May Retrace to 61.8 Fibo Level
According to the Daily chart, the price is currently trading at 1.4120 area, while USDCAD Bearish pressure continues to push lower. After a strong Bearish daily close below 1.4200 area, USDCAD declined and broke below yesterday’s daily bar low.
As per the current price action context, USDCAD may continue lower towards 1.3780, which is also 61.8 Fibo level. So, if the price decline towards 1.3780 area and finds support, the Bullish trend may regain momentum and recover higher towards 1.4650 area again.
Image: USDCAD Daily chart
On the other hand, the dynamic level of 20 EMA is residing below the current price and may act as a support. On the contrary, if the price can break below the dynamic level, the Bearish pressure may continue towards our target area.
Moreover, the MACD lines are residing far above from the 0.00 level and on the verge of making a Bearish cross over. Besides, the RSI indicator line is gradually sloping down while residing below overbought level 80.
To conclude, Bears are quite strong with the current momentum may continue further. Though the overall trend is Bullish, the Bears may retrace down towards 1.3780 area before Bulls continue with the former trend.