HomeContributorsTechnical AnalysisUSD/CAD Breaks Key Support, Risk of More Downsides

USD/CAD Breaks Key Support, Risk of More Downsides

Key Highlights

  • USD/CAD started a fresh decline from the 1.3685 zone.
  • It traded below a key bullish trend line with support at 1.3585 on the 4-hours chart.
  • EUR/USD could rise above the 1.0650 and 1.0680 resistance levels.
  • Gold price spiked above the $1,825 resistance zone.

USD/CAD Technical Analysis

The US Dollar climbed above the 1.3500 resistance against the Canadian Dollar. USD/CAD even broke the 1.3620 level before the bears appeared.

Looking at the 4-hours chart, the pair traded as high as 1.3705 before it started a fresh decline. There was a clear move below the 1.3650 support zone. Besides, the pair traded below a key bullish trend line with support at 1.3585.

The pair even settled below the 1.3550 level and the 100 simple moving average (red, 4-hours). It traded as low as 1.3484 and tested the 200 simple moving average (green, 4-hours).

On the downside, there is a key support at 1.3500. A downside break below the 1.3500 zone might spark a major decline. The next major support sits near the 1.3420 level. Any more losses might open the doors for a move towards the 1.3350 support zone.

On the upside, an initial resistance is near the 1.3560 level. The next major resistance may perhaps be near 1.3585. A clear move above the 1.3585 resistance might start a steady increase.

In the stated case, USD/CAD may perhaps rise towards the 1.3680 level. Any more gains could lead the pair towards the 1.3800 resistance zone in the coming days.

Looking at gold price, there was a spike above the $1,825 resistance zone, but the price failed to settle above the stated resistance zone.

Economic Releases

  • US Pending Home Sales for Nov 2022 (MoM) – Forecast +0.6%, versus -4.6% previous.
Titan FX
Titan FXhttp://titanfx.com
Titan FX is a technology driven online ECN forex and commodities broker that provides traders with next generation trading conditions, institutional grade spreads, fast trade execution, deep top tier liquidity and the security of financial registration and oversight.

Featured Analysis

Learn Forex Trading