USDCAD found Strong Resistance at 1.3325 area which may lead to certain Bearish counter. Price residing below 1.3325 may continue lower in the coming days. Let’s check USDCAD Technical Analysis for more levels and insights.
February 11, 2020 | AtoZMarkets.com – USDCAD has been non-volatile and impulsive with the recent Bullish momentum. It found strong resistance at 1.3325 area which proved earlier to be strong level to hold Bullish pressure.
Heavy Bearish Pressure in Oil impacted the Canadian Dollar leading USD to push higher consistently. Moreover, strong U.S. Employment Data supported the gains against CAD to rise to 4 month high. Coronavirus worry has impacted the demand of West Texas Intermediate (WTI) for 5 weeks straight by now. Despite the OPEC’s decision on supply cuts, Oil price is still quite indecisive while residing at the edge of $50 support area.
As Loonie (CAD) is a commodity linked currency, so Crude Oil price has deeper impact on the overall gains of CAD. As Oil suffers with strong selling pressure, CAD also lost significant momentum against USD. Though USD gains are quite dominating but certain Bearish pressure may occur along the way.
CAD to gain over USD as certain Retrace
CAD is currently pushing lower against USD after rejecting off the 1.3325 area with a daily close. The price is turning quite impulsive with the Bearish pressure which may lead the price below 1.3300 area with a daily close today.
image: USDCAD Daily chart
According to USDCAD daily chart, the price is residing quite far from the Dynamic level of 20 EMA. As a result, the price has higher probability to retrace back to the mean which might be around 1.3225 support area.
USDCAD found Strong Resistance already?
The price has found strong Resistance at 1.3325 area, from where the price pushed lower impulsively earlier. As per previous price action, the Bearish pressures were very impressive from the level and it might continue this time as well. But as CAD is linked to Oil, Oil weakness may lead to certain barrier for strong gains this time.
Currently, the price may head lower towards 1.3225 area but a break below may lead the price towards 1.3050 support. There is no indication of Bearish Divergence in MACD yet. But as per strength of the resistance, certain Bearish pressure may be observed along the way. Despite the strong Bullish Trend and Bias in place, USDCAD may push lower at least as retracement towards 1.3225 before continuing higher again.
To conclude, USDCAD finding strong resistance at 1.3325 area may push lower towards 1.3225 as Retracement. The bias is still Bullish, but certain Bearish pressure may be observed along the way.