(MENAFN- DailyFX)
Canadian Dollar Technical Price Outlook: USD/CAD Weekly Trade Levels
- I looked into whether the Loonie had bottomed (and USD/CAD topped) last week and that move has continued.
- Last week’s price action has produced a shooting star formation and yesterday’s FOMC announcement helped to extend the move, driving the USD lower as the Canadian Dollar bounces from its earlier-month lows.
- The analysis contained in article relies on price action and chart formations . To learn more about price action or chart patterns, check out our DailyFX Education section.
Advertisement
The USD/CAD reversal continues after last week’s rejection at the 1.2800 handle. While prices were strong and surging to open last week’s trade, the past nine days have shown a stark change-of-pace as sellers have re-taken control and driven the pair back below the key psychological level of 1.2500. At this point, USD/CAD is heading for one if its last spots of support should the bullish trend hold up, and this projects to around 1.2426. This is a swing-low from mid-July that lines up with a bullish trendline that initially guided the reversal higher in the first-half of June.
Given how aggressively prices have come off over the past two weeks, a bounce here wouldn’t necessarily obviate the potential for bearish price action in the big picture; but this could offer a temporary respite to the selling pressure that’s taken over of late.
USD/CAD Daily Price Chart
Chart prepared by James Stanley ; USDCAD on Tradingview
On a bigger picture look, that basis for reversal remains of interest. Last week’s price action produced a shooting star formation, which can often show up around bearish reversals. This week’s continuation of that selling pressure has opened the door to an evening star pattern, which is similarly followed with the aim of bearish reversals albeit on a longer-term basis with the three-candle-formation.
To learn more about evening stars or shooting stars , join us in DailyFX Education .
That puts some pretty intense focus on this spot of short-term support looked at earlier in USD/CAD. A hold of that support could lead to a short-term bump up to the 1.2500 psychological level, at which point we may be able to glean some additional information about that next trend in USD/CAD.
USD/CAD Weekly Price Chart
Chart prepared by James Stanley ; USDCAD on Tradingview
--- Written by James Stanley, Senior Strategist for DailyFX.com
Contact and follow James on Twitter: @JStanleyFX
MENAFN30072021000076011015ID1102542108
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.