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USD/CAD Gears Up — Bullish Momentum Could Take Over Soon

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Aayush Jindal

Key Highlights

  • USD/CAD started a fresh increase above the 1.3650 resistance.
  • It cleared a key bearish trend line with resistance at 1.3675 on the 4-hour chart.
  • EUR/USD is slowly moving lower and might test the 1.1650 zone.
  • GBP/USD is struggling to restart gains above the 1.3650 level.

USD/CAD Technical Analysis

The US Dollar found support at 1.3550 against the Canadian Dollar. USD/CAD broke the 1.3620 and 1.3650 levels to enter a positive zone.

Looking at the 4-hour chart, the pair cleared a key bearish trend line with resistance at 1.3675, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). There was a move above the 50% Fib retracement level of the downward move from the 1.3798 swing high to the 1.3556 low.

On the upside, the pair could face resistance near the 1.3700 level. The next key resistance sits near the 1.3740 level. A close above the 1.3740 level could set the pace for another increase.

In the stated case, the pair could even clear the 1.3780 resistance. The next major stop for the bulls could be near the 1.3800 resistance.

On the downside, immediate support is near the 1.3660 level. The next key support sits near 1.3640. Any more losses could send the pair toward the 1.3620 support zone.

Looking at EUR/USD, the pair started a short-term downside correction and might decline toward the 1.1650 level.

Upcoming Economic Events:

  • Fed's Musalem speech.
  • US Initial Jobless Claims - Forecast 235K, versus 233K previous.
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