USD/CAD Price Analysis: More sideways action but the price is close to some important zones

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  • USD/CAD is just above flat on the session on Friday.
  • The price has broken back above a key intraday trendline.

USD/CAD 4-hour chart

USD/CAD is trading just above flat on Friday and it is fair to say the price did not respect the recent trendline break to the downside. On Thursday lunchtime (London hours) the price popped back up after there was some weakness in oil. Today even despite some weakness in the greenback elsewhere the price managed to hold up against the Canadian dollar.

Looking closer at the chart, the mean value area of the consolidation was the main resistance. This is where the price has touched on many occasions. Now the price looks like it may dip back below the trendline it previously broke. The key support level will then be at 1.35 and if the price does break there could be a good case for the pair to test the lows. 

The Relative Strength Index indicator is still above the 50 level. It did dip to the oversold level but quickly recovered and now there is more room to the downside if the price does manage to fall. The MACD is also still looking bullish, the histogram is green but the signal lines are very flat but just below the mid-line. If the price closes anywhere near the current levels then on the daily chart there would be a bearish shooting star candle. Having said that the 200 Simple Moving Average has been providing some support on the daily chart (not shown in this article).

USD/CAD Technical Analysis

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