USD/CAD Price Analysis: Still pointing to the downside despite rising to 1.3165
- Loonie hits daily lows versus the dollar but remains under control.
- USD/CAD holds a bearish bias despite rising for two consecutive days.
The USD/CAD is rising for the second day in a row but is still trading sharply lower compared to the level it had a week ago and still the bias points to the downside.
The decline from levels near 1.3440 found support so far at the 1.3100 area. A break lower would likely trigger more losses. The next key support stands at 1.3030 that protects the 1.3000 area. The 1.30 is not only a round number but also a long term support.
On the upside, if the dollar manages to break and hold above 1.3150, it could alleviate the bearish pressure. The next resistance is seen at 1.3200/05, followed by 1.3265, a horizontal level and the 20-day moving average.
On a wider perspective, the negative bias will persist as long as USD/CAD trades below the downtrend from May at 1.3350.
USD/CAD daily chart
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
