USD/CAD Price Analysis: Bearish harami candle pattern to sink prices toward 1.3500

USD/CAD falls amidst broad US Dollar weakness across the board.
The SVB crisis in the United States sent ripples in the financial markets, with UST bond yields plummeting.
USD/CAD Price Analysis: In the near term, neutral to downward biased.

Christian Borjon Valencia FXStreet

USD/CAD drops from around daily highs of 1.3815, falls 0.90% on overall US Dollar (USD) weakness, spurred on an ongoing Regional Bank crisis in the US. Therefore, UST bond yields plunge; consequently, the buck is down. At the time of writing, the USD/CAD is trading at 1.3692.

USD/CAD Price Action

After rallying to YTD highs of 1.3862, the Canadian dollar (CAD) is recovering some ground, eyeing a daily close below the December 12 high at 1.3705. Even though the financial markets are punishing the US Dollar (USD), safe-haven flows would increase volatility in USD-denominated currency pairs. If the banking crisis ease, traders should expect a repricing of the Fed, meaning further upside in the USD/CAD is expected.

In the short term, the USD/CAD might fall toward 1.3600, but solid support areas would face it. The first support would be the February 20 daily high at 1.3665, followed by the 1.3600 figure. A breach of the latter will expose the 20-day Exponential Moving Average (EMA) at 1.3496 before testing the 50-day EMA at 1.3280.

In an alternate scenario, the USD/CAD first resistance would be 1.3700. Once cleared, the pair could rally towards the 1.3800 area, ahead of testing the YTD high at 1.3862.

Oscillators like the Relative Strength Index (RSI) at 58.22 aiming lower suggests that sellers are gathering momentum. The Rate of Change (RoC), shifted toward neutral territory, displaying that buying pressure is waning.

Trend: In the near term, neutral to downwards.

USD/CAD Daily Chart

USD/CAD Technical Levels

USD/CAD

Overview
Today last price	1.3687
Today Daily Change	-0.0146
Today Daily Change %	-1.06
Today daily open	1.3833

Trends
Daily SMA20	1.3576
Daily SMA50	1.348
Daily SMA100	1.3504
Daily SMA200	1.3313

Levels
Previous Daily High	1.3862
Previous Daily Low	1.3761
Previous Weekly High	1.3862
Previous Weekly Low	1.3582
Previous Monthly High	1.3666
Previous Monthly Low	1.3262
Daily Fibonacci 38.2%	1.38
Daily Fibonacci 61.8%	1.3823
Daily Pivot Point S1	1.3775
Daily Pivot Point S2	1.3718
Daily Pivot Point S3	1.3675
Daily Pivot Point R1	1.3876
Daily Pivot Point R2	1.3919
Daily Pivot Point R3	1.3977

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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