USD/CAD Price Analysis: Bulls keep hold of 1.34 for now and there are signs a base is forming

  • USD/CAD has pushed 0.21% higher on Friday but it’s still a pretty bearish week.
  • The oil price has also suffered and the risk theme has supported the move higher in the pair.

USD/CAD daily chart

USD/CAD has pushed higher on Friday as the oil price fell and the risk appetite in stocks dipped. In the last four sessions the price has fallen but the candle yesterday indicated that the move lower could be coming to an end. There was also a support area at 1.3359 where the price bounced on 10th June 2020. This time round the price move higher just above the zone. 

The red trendline on the chart could be key in the future as a break could indicate that a move higher could be on the horizon. Above that, the blue horizontal line at 1.3690 is the main resistance. It is the consolidation high and a break above would be a good sign for the bulls. 

The indicators are also pulling away from the low points. The Relative Strength Index has moved away from the more oversold level but it didn’t manage to get under the 30 line. The MACD signal lines are also moving higher and the histogram bars are getting smaller although they are still red. 

USD/CAD Technical Analysis

Additional levels

 

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