USD/CAD Probes for Low, Loonie Ranges

USD/CAD Probes for Low, Loonie Ranges

Canadian Greenback Technical Value Outlook: USD/CAD Weekly Commerce RangesCanadian Greenback energy in full view with USD/CAD close to six-year-lo

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Canadian Greenback Technical Value Outlook: USD/CAD Weekly Commerce Ranges

  • Canadian Greenback energy in full view with USD/CAD close to six-year-lows.
  • USD/CAD oversold on Weekly and displaying RSI divergence on Each day, might result in pullback themes in direction of lower-high resistance.

It was a perfect elementary backdrop for USD/CAD bears over the previous month. Whereas USD/CAD was grinding resistance at a well-recognized Fibonacci degree in late-April, the latest Financial institution of Canada charge resolution noticed the financial institution take a flip in direction of post-pandemic coverage, and that helped the Canadian Greenback to catch a robust bid that is still in-play immediately. On the opposite facet of the pair, the US Greenback stays extraordinarily weak, helped alongside by final week’s FOMC minutes that spotlight a Fed that seems nowhere close to taking motion, permitting for the potent mixture of USD weak point and CAD energy in order that the USD/CAD pair might plunge to contemporary six-year-lows.

At this level, USD/CAD is holding above the psychological 1.2000 degree with a really oversold RSI learn from the weekly chart. This makes development continuation prospects, not less than from the present degree, a extra daunting prospect given simply how stretched this transfer has change into.

USD/CAD Weekly Value Chart

USDCAD Weekly Price Chart

Chart ready by James Stanley; USDCAD on Tradingview

USD/CAD Pullback Potential

The development in USD/CAD stays robust and clearly bearish. The larger situation at this level is one in every of timing and positioning, as the main pair stays very close to a giant degree that, to date, bears have been unable to beat.

Becoming a member of that oversold RSI studying on the weekly chart above, the identical indicator has begun to diverge on the Each day chart, additional hinting {that a} pullback could also be nearing after a really aggressive extension of the sell-off that’s now spanned greater than a month.

This doesn’t essentially obviate the bearish development, however it does spotlight the truth that sellers might need to be affected person right here, searching for a pullback that might presumably permit for entry on bearish development resumption methods.

USD/CAD Each day Value Chart

USDCAD Daily Price Chart

Chart ready by James Stanley; USDCAD on Tradingview

USD/CAD: Loonie Ranges

On the beneath four-hour chart, I’ve recognized a number of areas of curiosity for lower-high resistance in bearish continuation situations. The primary and most close by is from final week’s swing-high, round 1.2143; after which the weekly excessive from two weeks in the past comes into view round 1.2203.

The extent round 1.2250 is the 2018 swing-low, and this will perform as an ‘r3’ zone of resistance. A breach above that degree would entail a 200+ pip retracement from final week’s low. Whereas this might nonetheless be a small pullback within the grand scheme of the bigger development, a break above that degree ought to include a renewed look into the technical backdrop in USD/CAD.

USD/CAD 4-Hour Value Chart

USDCAD Four Hour Price Chart

Chart ready by James Stanley; USDCAD on Tradingview

— Written by James Stanley, Senior Strategist for DailyFX.com

Contact and comply with James on Twitter: @JStanleyFX

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