USD / CAD Price Analysis: Still heading lower despite rising to 1.3165

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  • Loonie hits daily lows against the dollar, but remains under control.
  • The USD / CAD maintains a bearish bias despite having risen for two consecutive days.

He USD / CAD it is rising for the second day in a row, but it is still trading much lower compared to the level it was a week ago and the bias is still pointing to the downside.

The decline from levels around 1.3440 found support so far at the 1.3100 area. A break to the downside would likely lead to further losses. The next key support is at 1.3030 which 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 out and stay above 1.3150, it could ease the downward pressure. The next resistance is seen at 1.3200 / 05, followed by 1.3265, a horizontal level and the 20-day moving average.

In a broader perspective, the negative bias will persist as long as USD / CAD trades below the May downtrend at 1.3350.

Daily chart

Credits: Forex Street

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