Canadian Dollar Price - USD/CAD May Resume Bearish Price Action

Strategies Overview June 04, 2019 (0)

USD/CAD is sliding lower due to recent USD weakness. Here is the possible bearish scenario with the key technical levels to watch.

USD/CAD Price Outlook, Charts and Analysis

  • US Dollar looking ahead to Fed Chairman Powell speech today.
  • USD/CAD edging lower after the last week’s failure to close above the consolidation zone.

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USD/CAD – Back to the Congestion Area

On May 29, USD/CAD rallied off the consolidation zone . However, it failed to close above 1.3517 and repeated its failure twice in the following days after returning to trade within the same old consolidation zone. The price showed a lack of momentum to keep rallying and this has been confirmed as the RSI reading remained flat between 58- 59.

Yesterday, the bears took the initiative leading USD/CAD to close below 1.3457. Alongside, the RSI crossed below the 50 threshold, tipping the scale to the downside.

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USD/CAD DAILY PRICE CHART FEB 11, 2019 – Jun 04, 2019

USD/CAD

Looking at the USD/CAD daily chart we notice the bears looking to send the price to the lower end of April 23 consolidation zone at 1.3377. Weekly support levels at 1.3410, 1.3400 and 1.3386 should be watched closely.

Further bearish sentiment could start if the pair closes below 1.3377 moving the price to the March 4 – April 23 consolidation zone 1.3286 – 1.3377 with an increased likelihood to see the lower end of the range. Weekly support at the May 22 low 1.3357/54 and the support zone at 1.3341- 1.3335 should be monitored. Additionally, key support levels at 1.3309 and 38.2% Fibonacci retracement at 1.3299 also need to be considered.

A close above 1.3457 could mean a rally towards 1.3517. Daily resistances at 1.3469, 1.3493, remain in focus.