USD/CAD Price Analysis: Struggles at 1.3300 but holds to gains, amid bearish technical pattern
- USD/CAD forms a bearish engulfing pattern and struggles to breach the 1.3300 mark, signaling a possible downside.
- Pair is currently neutral but might dip further with key support at the 20-day EMA and potentially slide to YTD low.
- If 1.3300 is reclaimed, USD/CAD may challenge the 50-day EMA before tackling significant resistance at 200 EMA and 1.3400.
USD/CAD bounces off the 20-day Exponential Moving Average (EMA) at 1.3278 after forming a bearish engulfing candlestick pattern, which suggests further downside is expected. Nevertheless, dynamic support spurred a jump in the USD/CAD exchange rates but fell short of cracking the 1.3300 figure. At the time of writing, the USD/CAD is trading at 1.3286 after hitting a daily high of 1.3304.
USD/CAD Price Analysis: Technical outlook
The USD/CAD remains neutral biased, capped on the upside by strong resistance levels, like the 50, 200, and 100-day EMAs, each at 1.3354, 1.3383, and 1.3411, respectively. Additionally, a bearish engulfing candle pattern suggests the pair might dip lower, with the 20-day EMA being the first support at 1.3278.
A breach of the latter will expose July’s 4 daily low of 1.3203. once cleared, the USD/CAD could extend its slide to the year-to-date (YTD) low of 1.3116.
Conversely, if USD/CAD reclaims 1.3300, the 50-day EMA at 1.3354 would be up for grabs. Next, resistance levels would emerge at the 200 EMA before buyers challenge 1.3400. Once broken, the USD/CAD could test the 100-day EMA at 1.3411.
USD/CAD Price Action – Daily chart
