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USD/CAD Price Analysis: Greenback bounces from 26-month lows vs. CAD

  • USD/CAD comes back to life after reversing up from levels not seen since October 2018.
  • The level to beat for bulls is the 1.3094 resistance. 
 

USD/CAD daily chart

 
The market is reversing up sharply after reaching levels not seen since October 2018. However, USD/CAD trades below its main SMAs, which suggest an underlying bearish bias. 
 

USD/CAD four-hour chart

 
The market decided to create a reversal up above the 1.3000 handle and is now challenging the 1.3094 resistance. As the market is quite overextended it is possible that it enters a correction in the 1.3040/1.3094 range. However, the bias seems to be tilted to the upside with ultimately a break above the 1.3094 resistance and a run towards the 1.3148 and 1.3189 levels, according to the Technical Confluences Indicator. Support is seen at the 1.3000 and 1.2960 levels.   
 
  

Additional key levels

 

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