- USD/CAD surrendered 1.3400, as buyers could not break the confluence of the 20 and 100-day EMAs.
- USD/CAD Price Analysis: Upward biased, but once it falls below 1.3225, a move towards 1.3000 is on the cards
The USD/CAD extended its losses on Thursday after hitting a daily high of 1.3407, though as the Asian session begins, it’s almost unchanged. Additionally, the 20-day Exponential Moving Average (EMA) is crossing below the 100-day EMA, a bearish signal, suggesting further downside pressure lies ahead. At the time of writing, the USD/CAD is trading at 1.3323.
USD/CAD Price Analysis: Technical outlook
From a daily chart perspective, the Loonie (CAD) had continued to strengthen against the US Dollar (USD), as the USD/CAD failed to clear solid resistance in the form of the 100-day EMA at 1.3418 and the 20-day EMA at 1.3420. Nevertheless, the USD/CAD bias is bullish as long as the exchange rates hold above the 200-day EMA, which is meandering around 1.3253.
USD/CAD traders should be aware of a break of a support trendline drawn from the lows of November, which could pave the way for further losses. Oscillators-wise, the Relative Strength Index (RSI) continued its bearish path, while the Rate of Change (RoC) indicates consolidation lying ahead as volatility remains low.
The USD/CAD key support levels would be the 1.3300 figure. A break below, and the USD/CAD could test the 200-day EMA at 1.3253. Once cleared, the pair’s next demand area will be the November 15 low at 1.3225, followed by 1.3200.
As an alternate scenario, if the USD/CAD edges up, its first supply area would be the upslope support trendline broken on Thursday at around 1.3330/40. Once reclaimed, the confluence of the 20/100-day EMAs around 1.3418/20 would be next, and then the January 19 high at 1.3520.
USD/CAD Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY remains below 158.00 after Japanese data
Soft US Dollar demand helps the Japanese Yen to trim part of its recent losses, with USD/JPY changing hands around 157.70. Higher than anticipated Tokyo inflation passed unnoticed.
AUD/USD weakens to near 0.6200 amid thin trading
The AUD/USD pair remains on the defensive around 0.6215 during the early Asian session on Friday. The incoming Donald Trump administration is expected to boost growth and lift inflation, supporting the US Dollar (USD). The markets are likely to be quiet ahead of next week’s New Year holiday.
Gold depreciates amid light trading, downside seems limited due to safe-haven demand
Gold edges lower amid thin trading following the Christmas holiday, trading near $2,630 during the Asian session on Friday. However, the safe-haven asset could find upward support as markets anticipate signals regarding the United States economy under the incoming Trump administration and the Fed’s interest rate outlook for 2025.
Floki DAO floats liquidity provisioning for a Floki ETP in Europe
Floki DAO — the organization that manages the memecoin Floki — has proposed allocating a portion of its treasury to an asset manager in a bid to launch an exchange-traded product (ETP) in Europe, allowing institutional investors to gain exposure to the memecoin.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.