USDCAD is facing resistance at 1.3450 and trying to continue the uptrend. Currently, the pair is trading at 1.3420 and it may retest the resistance level again. Let’s check technical analysis for more levels and insights.
March 5, 2020, | AtoZ Markets – USDCAD Bullish momentum takes the price higher towards 1.3450 quite impulsively. After reaching a 1.3450 event area, the price pushes down towards 1.3320 area for a retracement. If the bulls fail to break above the 1.3450 resistance area again, the Bears may enter the market.
USDCAD Price Fundamental Highlights
The U.S. Dollar strength continued to decline even today, on expectations that the Federal Reserve will cut interest rate again. After an emergency rate cut by 50 basis points took place this week to support the economy from the Coronavirus outbreak. Olle Holmgren, the Chief Strategist at SEB said, “The reports in the Beige Book are likely to have been important for the Fed’s inter-meeting rate cut.”
On the other hand, U.S. Non-Farm Employment Change and Unemployment Rate news is going to be published tomorrow. In this case, if the actual result comes higher than forecast, USD may regain the momentum against other currencies.
USDCAD Faces Resistance at 1.3450 And may Retest Again
USDCAD is currently residing near 1.3420 and trying to push higher. After a retracement from the 1.3320 area, USDCAD became volatile but managed to break above the corrective phase. If USDCAD faces resistance again at 1.3450 area, the Bears may take over the market in the coming events.
Image: USDCAD 4 Hour Chart
According to the 4-hour chart, USDCAD Bulls are now pushing the price higher to retest 1.3450 area. If the price is able to retest 1.3450 resistance again, USDCAD may push down towards 1.3320 support in the coming days. The dynamic level of 20 EMA is residing below the current price, along with the Kijun line and the Tenkan line. It became a support for the Bulls to take the price higher.
Moreover, the MACD lines are residing above the 0.00 level and moving upwards gradually. The MACD histogram volumes are also residing above the 0.00 level and create a Bearish divergence, which is an indication of Bears may take over the market soon.
Read More – BoE Governor says Bitcoin has no Intrinsic Value
USDCAD Bullish Pressure May Continue Further
According to the Daily chart, USDCAD is now trading at 1.3420 area and trying to push higher continuously. After retracing lower to the 1.3220 area, USDCAD price moved higher quite impulsively. USDCAD Bullish momentum failed to sustain further after USDCAD faces resistance at 1.3460 area. The USDCAD still has the potential to drive the price further up as momentum is still Bullish. If USDCAD is able to break above 1.3450 area, the Bullish pressure may sustain further towards 1.3500 key resistance.
Image: USDCAD Daily Chart
Moreover, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line and the Tenkan line. It became support when USDCAD came to retrace down towards the 1.3320 area. On the other hand, the MACD histogram volumes are showing Bearish divergence. It indicates that Bears may enter the market after an absolute Bullish pressure.
To Conclude, USDCAD price may rally higher towards 1.3500 key resistance area in the coming days. If the price fails to break above the resistance area, the Bears may take over the market in the coming days.