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The USD/CAD pair is experiencing a downward trend, primarily due to the collision with the 1.3760 resistance level, which has capped recent gains and limited the upward momentum.
Technical Outlook:
Technical analysis suggests a prevailing bearish bias. This is supported by the negative crossover of the simple moving averages, which are exerting downward pressure on the price. Additionally, the pair’s inability to break above the 1.3775 resistance level further strengthens the bearish outlook.
Downside Targets:
The bearish bias indicates a potential decline towards 1.3690. A break below this level could intensify the downward pressure, targeting 1.3645.
Potential Reversal:
However, traders should remain cautious as a return of trading stability above 1.3775 could invalidate the bearish scenario. In this case, the pair could resume its upward trajectory, potentially targeting 1.3810 and 1.3850.
Key Levels:
- Resistance: 1.3775
- Support: 1.3690, 1.3645
Trading Bias:
The current bias is bearish, but traders should exercise caution and closely monitor price action around the key levels mentioned above. A break above the resistance level could signal a reversal of the current trend.
Disclaimer
This analysis is for informational purposes only and does not constitute financial advice. Trading foreign exchange involves risk, and traders should always conduct their own research and exercise caution.
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