USDCAD is facing resistance at 1.4700 area and Bears may strike back. USDCAD gained up to 900+ pips very impulsively in just a week. Let’s check USDCAD Technical Analysis for more levels and insights.
March 20, 2020 | AtoZ Markets – USDCAD recent Bullish momentum took the price higher towards 1.4700 area, which is January, 2016 high. The Bears failed to hold the price below 1.3980 resistance area, and USDCAD Bulls continued the Rally. As per the current scenario, USDCAD found resistance at 1.4700 and may continue lower.
USDCAD gained more than 350+ pips or 2.4% so far this Wednesday. The main reason behind this rally is the investor sentiment, showing interest to invest in USD rather than other currencies or stocks. As a result, the US dollar index rose at a three-year high of 101.07, up 1.50% in a single day and CAD struggle continues due to Coronavirus outbreak.
USDCAD Facing Resistance May Continue Lower
USDCAD is currently residing near 1.4280 area and trying to decline further. After USDCAD facing resistance 1.4700 area Bears pushed the price lower quite impulsively.
Image: USDCAD 4 Hour Chart
According to the 4-hour chart, the Bears are pushing the price lower after USDCAD faced resistance at 1.4700 area. The price is currently trading at 1.4280 area after breaking below the dynamic support of 20 EMA. As per current price action, USDCAD may decline further towards 1.3980 area for a retracement. If the price somehow bounces from 1.3980 support area with a 4-hour bullish bar, the Bullish trend may continue further higher.
Furthermore, the dynamic levels have now became a resistance for the price and may now confluence for a further move lower. Besides, the MACD indicator lines had Bearish cross over while residing above the 0.00 level. In this case, Bears have greater confluence to sustain the Bearish momentum in place.
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USDCAD Bulls May Strike Higher After Retracement
According to the Daily chart, USDCAD is now trading at 1.4280 area and trying to push the price lower. After an extended period of Bullish trend, USDCAD facing resistance at 1.4700 area and currently reverting back to the Mean. If the price retraces down towards 1.3980 area and finds support, the Bullish trend may regain momentum towards the 1.4700 area in the process.
USDCAD Daily Chart
In addition to this, the dynamic level of 20 EMA is residing below our expected support area of 1.3980, along with the Kijun line. The dynamic level may pull the price down by reverting back to the Mean 20 EMA. Moreover, the MACD indicators lines and the histogram volumes are rising upward gradually indicating increasing strength of Bulls in the process.
To conclude, USDCAD is currently pushing lower as a retracement. Though the overall trend is Bullish, the Bears may retrace down towards 1.3980 area before Bulls regains momentum to continue with the preceding trend.