USDCAD bulls met resistance at 1.3350 and this may result in a price decline in the coming days. The pair is currently trading near the 1.3338 area and may retest 1.3350 again. Let’s check USDCAD Technical Analysis for more levels and insights.
February 27, 2020 | AtoZMarkets – USDCAD could not break above the 1.3350 resistance area after an impulsive and non-volatile Bullish momentum. USDCAD was able to climb beyond 1.3300 with a daily close and pushed the price higher towards 1.3350 key resistance area. Bears are currently losing momentum after hitting the key resistance. So, if the bears are able to hold the price below 1.3350 with a daily close, sellers may take over the market soon.
USDCAD Fundamental Highlights
The Federal Reserve may cut the interest rate to recoup the impact of Coronavirus overseas. The United States stock declined today after news coming from Brazil’s first coronavirus affected some individuals. That indicates the U.S. is not as safe as Donald Trump said earlier.
In another development, Thu Lan Nguyen, an analyst at Commerzbank, said,” Rate cut expectations have gained momentum, and U.S. rate expectations are falling a lot more than they are in the Eurozone.”
On the other hand, Canadian GDP (Gross Domestic Product) yet to be published today. If actual comes higher than the forecast is good for the economy which will result in strong CAD momentum. Moreover, Coronavirus has not affected the Canadian economy yet, but there is always a risk, which can’t be overlooked.
USDCAD Faces Resistance at 1.3350
USDCAD faces resistance near the 1.3350 area after an extended impulsive momentum. The price may hold at 1.3350, before Bears may take over the market sentiment. USDCAD has a great probability to decline towards 1.3300 area in the upcoming days.
image: USDCAD 1 Hour Chart
According to the 1-hour chart, USDCAD price is currently rising towards 1.3350 resistance area again. It may retest the 1.3350 area, then certain Bearish intervention can be seen. The dynamic level of 20 EMA is residing near the current price area which may also act as a barrier to the upcoming down move. If the price able to break below the dynamic level of 20 EMA, USDCAD bearish pressure may sustain towards 1.3300 area.
Moreover, the MACD indicator histogram forms a Bearish divergence, which indicates that Bears may change the Bullish momentum soon. The MACD lines were residing above 0.00 line and crossed each other to the downside.
USDCAD Bullish Momentum may Hold at $1.3350 Area
According to the daily chart, USDCAD faces resistance at 1.3350 key level after an impulsive momentum. Bullish pressure may hold as it is residing near the peak of 2019. On the other hand, the MACD histogram is forming Bearish divergence on the Daily chart, which is an indication that Bears may take over the market soon. If Bears are able to hold the price below 1.3350 area, USDCAD may push down towards 1.3260 area soon.
image: USDCAD Daily Chart
Moreover, The dynamic level of 20 EMA is residing below the 1.3260 area. It may pull the price lower as Mean reversion, and the Kijun line and the Tenkan line also may work as confluence along the way to attract the price lower.
To conclude, USDCAD may reverse lower if it is contained below 1.3350 area with a daily close. As the Bearish pressure sustains, the price may even touch the 1.3200 area in the coming days.