- The Loonie would end the week with losses above 2%.
- Gloomy sentiment weighed on risk-sensitive currencies like the Canadian dollar.
- USD/CAD Price Analysis: A daily close above 1.3300 could pave the way to 1.3400.
The USD/CAD hit a nearly two-year high around 1.3307, a level last seen in November 2020, spurred on by risk-off momentum as investors worry an aggressive Federal Reserve hike could lead to the US economy into a recession. At time of writing, USD/CAD is trading at 1.3293, up 0.51% on the day.
USD/CAD Price Analysis: Technical Outlook
The Loonie weakened against a solid greenback, briefly breaking the 1.3300 level during the American session. Considering that USD/CAD started its uptrend in April 2021, the currency could continue to extend its gains. Once a daily close above the 1.3300 figure has been achieved, the next target would be on October 29, 2020, a daily high, around 1.3390. Once surpassed, it would expose the September 2020 highs at 1.3418.
In the short term, USD/CAD is oriented to the upside, even though it has pulled back above 1.3300. It is worth noting that the 20 EMA at 1.3267 capped the pullback; since then, the pair has rallied towards the R2 daily pivot at 1.3295. A break of the latter will re-expose the yearly high at 1.3307, which, once breached, will open the door to the R3 pivot point at 1.3347, before the R4 daily pivot at 1.3400.
USD/CAD Key Technical Levels
Source: Fx Street
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