USDCAD has become corrective but still maintained the price below 1.37 area. USDCAD volatility increased as the Bank of Canada going to announce the interest rate today. Will USDCAD sustain the bearish trend further? What are the charts and technical indicators are saying? Read more to find further insights into today’s USD/CAD Technical Analysis.
15 July 2020 | AtoZ Markets – USDCAD is currently trading around 1.3570 area and trying to decline. The price has been consolidating inside the ranges of 1.37 to 1.35 area from an extended period. As per the current price action, USDCAD volatility may increase further in the coming days.
USDCAD price fall today during the Asian session as the U.S. economy is facing a hard time because of Coronavirus pandemic second wave. Therefore, the U.S. Small Business Administration’s inner guard dog has propelled an investigation into a specialised glitch that drove numerous private companies to get copy loans through a prominent government Coronavirus help program.
On the other hand, Bank fo Canada going to release overnight rate today at 8:00 pm (GMT). It has expected to be the same as previous, which is 0.25%. So, if the actual comes greater than the forecast, it will good for CAD. In contrast, a decline in the percentage may be bad for CAD.
USDCAD Volatility Increased as Investors Are Looking Forward to the Rate Decision
USDCAD is currently residing near 1.3570 area and trying to push downward. Moreover, the price also broke below the dynamic level of 20 EMA on the intraday chart.
Image: USDCAD 4 Hour Chart
According to the 4-hour chart, USDCAD volatility increased and currently residing nears 1.3570 area. As per the current price action, if the price can break below the uptrend line with a 4-hour candle close, the bears may sustain the bearish pressure towards 1.35 support area. Alternatively, if the price bounced higher from the uptrend line and closed above 1.36 area, the bulls may regain momentum and recover higher towards 1.37 area.
In addition, the dynamic level of 20 EMA is currently residing above the price, which may act as strong resistance. In contrary, if the price breaks above the dynamic level, the bulls may regain momentum in the coming days. Besides, the Stochastic Oscillator lines are currently residing below the overbought level 80 and may have a bearish intersection.
USDCAD Bearish Bias May Continue Further
According to the daily chart, USDCAD is currently residing near 1.3570 area as volatility increased. As per the current price action, if the price can have a daily bearish close below 1.36 area, the bears may push the price down towards 1.35 area as a first target. The second target will be 1.33 event level.
Image: USDCAD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may act as strong resistance if the price can have a daily bearish close in the coming days. Also, the MACD lines are currently residing below 0.00 level, which indicates bearish are still holding the momentum.
To conclude, USDCAD bearish trend has gained almost 700 pip in the last two month, and the gains may sustain further. A daily close is required to find the definite momentum in the coming days.