Canadian Dollar Outlook: USD/CAD a Break above 1.3200 price – What is Next?
On July 26, USD/CAD closed with a Doji pattern indicating to a possible risk of reversal. On Wednesday, the price dropped to the boundary of 1.3100 handle. However, the buyers took charge after, sending the pair yesterday to its highest levels in six weeks.
This week, the Relative Strength Index (RSI) rebounded from 50 then pointed higher emphasizing the seller’s lack of momentum to start a fresh downside move.
Today, USD/CAD tests a move to the higher trading zone 1.3224 – 1.3280. Hence, a close above the low end could send the price towards the high end in the next week. Although, the weekly resistance level underlined on the chart (zoomed in) should be kept in focus. Further close above the high end may cause a rally towards 1.3357. Nonetheless, the weekly resistance level and zone marked on the chart should be considered.
On the other hand, any failure in closing above the low end could send the pair towards 1.3166 contingent on clearing the handle drawn on the chart (zoomed in). See the chart to know more about the lower trading zone/s with the daily and weekly support levels the price might rebound from in a further bearish scenario.
On July 26, USD/CAD closed with a Doji pattern indicating to a possible risk of reversal. On Wednesday, the price dropped to the boundary of 1.3100 handle. However, the buyers took charge after, sending the pair yesterday to its highest levels in six weeks.
This week, the Relative Strength Index (RSI) rebounded from 50 then pointed higher emphasizing the seller’s lack of momentum to start a fresh downside move.
Today, USD/CAD tests a move to the higher trading zone 1.3224 – 1.3280. Hence, a close above the low end could send the price towards the high end in the next week. Although, the weekly resistance level underlined on the chart (zoomed in) should be kept in focus. Further close above the high end may cause a rally towards 1.3357. Nonetheless, the weekly resistance level and zone marked on the chart should be considered.
On the other hand, any failure in closing above the low end could send the pair towards 1.3166 contingent on clearing the handle drawn on the chart (zoomed in). See the chart to know more about the lower trading zone/s with the daily and weekly support levels the price might rebound from in a further bearish scenario.