USDCAD has become impulsive after rejecting the 1.3140 event level. USDCAD found resistance around 1.3140 area and push the price down aggressively towards 1.3085 support level. Will USDCAD decline further? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/CAD Technical Analysis.
September 4, 2020, | AtoZ Markets – USDCAD is currently trading around 1.3090 area and trying to push downside. However, the price broke below the dynamic level of 20 EMA on the intraday chart. As per the current price action, the price may face strong support around 1.3085 area in the coming days.
The United States and Taiwan said today they were looking for “like-minded” democracies to join a movement in worldwide supply chains during the Covid-19 pandemic, as Washington hopes to quicken a move away from financial dependence on China. Moreover, the Trump administration is making a move on various fronts to rebalance U.S. monetary binds with China, including chief orders planned for guaranteeing household production of key items and utilizing “Purchase America” necessities and incentives to convince U.S. firms to reinforce household incentives chains. In addition, the U.S. Nonfarm payroll report is going to publish today. So, if the report comes greater than the forecast is seen as positive (or bullish) for the USD.
On the other hand, Canada’s Net Change in Employment, Unemployment Rate, Ivey Purchasing Managers Index S.A, and Ivey Purchasing Managers Index report will also be going to publish today at 20:00 GMT. So, if the report comes in favor of CAD is seen as positive (or bullish) for the CAD.
USDCAD Found Resistance as the Canadian Unemployment Rate Predicted Positive
USDCAD is currently trading around 1.3090 area and trying to decline. Moreover, the price also found resistance at the Kumo cloud on the intraday chart.
Image: USDCAD 4 Hour Chart
According to the daily chart, USDCAD found resistance and currently residing near 1.3090 area. As per the current price action, if the price breaks below 1.3085 support area, the bears may decline further towards 1.30 in the coming days. Alternatively, if the price bounces higher from 1.3085 support level, the bulls may regain momentum and recover higher towards 1.3140 area in the process.
In addition, the dynamic level of 20 EMA is currently residing near the price, which may act as support if the price bounces higher, or may work as resistance if the price breaks below in the days ahead. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level.
USDCAD Bears Are Optimistic May Decline Further
According to the daily chart, USDCAD found resistance and currently trading around 1.3090 area. As per the current price action, if the price can have an impulsive bearish candle close below 1.3140 area, the bears may sustain the bearish bias towards 1.30 area as a first target. The second target will be 1.29 if the price breaks below 1.30 in the coming days.
Image: USDCAD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may act as strong resistance to push the price downside. Besides, the MACD lines are currently residing below 0.00 level, which indicates bears are still trying to sustain the bearish trend.
To conclude, after an extended period of bearish momentum, USDCAD successfully retraced upward towards 1.3140 area. A daily close required to identify the definite momentum in the days ahead.