USDCAD Bears may continue the Run remaining Below 1.3300 for further bearish momentum with target toward 1.3200. The price currently push further down. Let’s check USDCAD Technical Analysisfor more levels and insights.
February 12, 2020 | AtoZMarkets.com– USDCAD is currently residing below 1.3300 after a bearish engulfing daily candle bar close. Price is now seems very volatile and it is pushing the price lower in a corrective manner. It’s an indication that bears may hold the momentum against bulls.
Recently, FED Chair Jerome Powell stated that U.S. Economy is in good place and may continue performing well. Currently the interest rate is residing between 1.50% to 1.75% which is good for economic expansion. U.S. Labor Market report has also been quite impressive with the numbers published recently which may impact the upcoming gains for the USD.
On the other hand, Oil gaining momentum after consecutive Bearish pressure lead CAD to regain certain momentum. CAD having backup from positive Employment Change and Unemployment Rate report has managed to sustain good gains over USD. But how long, the CAD gains may sustain is still a question to answer.
USDCAD to Settle Below 1.3300 may Push Lower
USDCAD has holding the price below 1.3300 in corrective manner. It indicates that bears trying hard to push the price lower in USDCAD. Price is strongly carrying by 20 EMA which is our dynamic resistance it indicates bears may lead the price towards 1.3200 support area.
image: USDCAD Daily Chart
According to the daily chart, the price currently residing below 1.33030 resistance area with a daily engulfing bar. As per current price action, it has greater probability to push lower. The dynamic levels like 20 EMA, Tenkan and Kijun line is residing above the current price point. In coming days, these dynamic levels can act as resistance to push the price further downward.
Moreover, Tenkan and Kijun line having a Bearish crossover is showing confluence for upcoming Bearish momentum. As per MACD indicator, histogram volumes are decreasing gradually which is also sign of bearish momentum adding to the confluence.
Read More – Top 5 Factor affecting Crude Oil Prices in 2020
USDCAD Bears may Continue to push lower
image: USDCAD 4 Hour Chart
According to the 4 hour chart, price is impulsively pushing lower after a long corrective period which may continue further. The price managed to cross dynamic level of 20 EMA and also Tenkan line and Kijun line impulsively leading the price more downward.
On the other side, MACD is currently showing Convergence for the current Bearish pressure. As the price moved below 1.3300 area, the MACD lines also seen sloping lower as confluence. Though Kumo Cloud may act as strong support while proceeding lower but price remaining below 1.3300 may lead the Bears to continue the pressure.
To conclude, USDCAD Bears may Continue to have good confluence to push lower. Price may even reach 1.3050 area if Bears can sustain in the upcoming days.