Home Markets USD/CAD Price Analysis: Buyers Approach Weekly Lows on Risk Aversion

USD/CAD Price Analysis: Buyers Approach Weekly Lows on Risk Aversion

USD/CAD Price Analysis: Buyers Approach Weekly Lows on Risk Aversion
  • US dollar recovers on risk aversion, spurred by China’s COVID-19 crisis.
  • USD/CAD bounced from the lows around 1.3300 and tested the 1.3400 level.
  • USD/CAD Price Analysis: The head and shoulders chart pattern remains intact.

The US dollar (USD) recovers front to the Canadian dollar (CAD) in the middle of a subdued trading session, triggered by tight liquidity conditions caused by the US Thanksgiving holiday. However, China’s Covid-19 cases jumped above 30,000, spurring a risk-off momentum, and US Treasury yields rose, supporting the dollar. At the time of writing, USD/CAD is trading at 1.3376.

USD/CAD Price Analysis: Technical Perspective

On the daily chart of USD/CAD, the major currency erased Thursday’s losses, but failed to break above 1.3400 after hitting a daily high of 1.3398. Although the dollar is rising, traders should be aware that the head and shoulders chart pattern is still in play. However, USD/CAD needs to break below 1.3300 and the 100 day EMA at 1.3268 to compound the slide towards the head and shoulders chart pattern. Otherwise, USD/CAD could break above the 1.3500 neckline and invalidate the pattern.

As an alternative scenario, the first resistance of the USD/CAD would be the figure of 1.3400. A break of the latter will send USD/CAD to the confluence of the head and shoulders neckline and the 1.3500 psychological level, followed by the 50-day EMA at 1.3566.

Key USD/CAD Technical Levels


Last price today 1.3376
Today I change daily 0.0038
Today’s daily change in % 0.28
today’s daily opening 1.3338
daily SMA20 1.3449
daily SMA50 1.3566
daily SMA100 1.3267
daily SMA200 1.3008
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 minimum 1.3496
Daily Fibonacci of 38.2% 1.3334
Daily Fibonacci of 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

Source: Fx Street



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