USD/CAD Price Analysis: Buyers stepped in around weekly lows on risk aversion

The US Dollar stages a recovery on risk aversion spurred by the China Covid-19 crisis.
USD/CAD bounced off weekly lows around 1.3300 and tested the 1.3400 mark.
USD/CAD Price Analysis: The head-and-shoulders chart pattern remains intact.

Christian Borjon Valencia FXStreet

The US Dollar (USD) stages a recovery against the Canadian Dollar (CAD) amid a subdued trading session sparked by thin liquidity conditions caused by the observance of the US Thanksgiving holiday. However, China’s Covid-19 cases jumping above 30,000 spurring a risk-off impulse, and US Treasury yields rising, underpinned the USD. At the time of writing, the USD/CAD is trading at 1.3376

USD/CAD Price Analysis: Technical outlook

Delving into the USD/CAD daily chart, the major erased Thursday’s losses, though it faltered to crack the 1.3400 figure after reaching a daily high of 1.3398. Although the US Dollar is buoyant, traders should know that the head-and-shoulders chart pattern is still in play. However, the USD/CAD needs to tumble below 1.3300 and the 100-day Exponential Moving Average (EMA) at 1.3268 to exacerbate a fall toward the head-and-shoulders chart pattern. Otherwise, the USD/CAD might jump above the 1.3500 neckline and invalidate the pattern.

As an alternate scenario, the USD/CAD first resistance would be the 1.3400 figure. A breach of the latter will send the USD/CAD climbing toward the confluence of the head-and-shoulders neckline and the 1.3500 psychological level, followed by the 50-day Exponential Moving Average (EMA) at 1.3566.

USD/CAD Key Technical Levels

USD/CAD

Overview
Today last price	1.3376
Today Daily Change	0.0038
Today Daily Change %	0.28
Today daily open	1.3338

Trends
Daily SMA20	1.3449
Daily SMA50	1.3566
Daily SMA100	1.3267
Daily SMA200	1.3008

Levels
Previous Daily High	1.3362
Previous Daily Low	1.3316
Previous Weekly High	1.3409
Previous Weekly Low	1.3226
Previous Monthly High	1.3978
Previous Monthly Low	1.3496
Daily Fibonacci 38.2%	1.3334
Daily Fibonacci 61.8%	1.3345
Daily Pivot Point S1	1.3315
Daily Pivot Point S2	1.3293
Daily Pivot Point S3	1.327
Daily Pivot Point R1	1.3361
Daily Pivot Point R2	1.3384
Daily Pivot Point R3	1.3407

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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