USD/CAD Price Analysis: Retreats below 1.3600, but the uptrend is still in play
- USD/CAD retreats from daily and weekly highs as the Asian session is about to begin.
- Despite dipping, oscillators remain bullish, meaning that further USD/CAD upside is expected.
- USD/CAD Price Analysis: Bullish reclaiming of 1.3600 could trigger a rally towards 1.3800.
The USD/CAD tumbled from weekly highs around 1.3658, dropping nearly 0.40%, as Wall Street closed with losses, while the greenback remained offered throughout the session. US economic data was mixed, though a subcomponent of the ISM Manufacturing PMI report for February sparked inflation fears in the United States (US). At the time of writing, the USD/CAD exchanges hands at 1.3594.
USD/CAD Price action
The USD/CAD is upward biased despite dipping below 1.3600, in a fall sponsored by overall US Dollar weakness. Technically speaking, the USD/CAD pair’s failure to print a lower low than Tuesday’s 1.3560 kept the uptrend intact, even though the Relative Strength Index (RSI) shifted downwards.
For a bearish continuation, USD/CAD sellers must achieve a daily close below 1.3560. Once that is achieved, the USD/CAD next support would be the January 19 daily high turned support at 1.3520, ahead of testing the 1.3500 psychological level.
On the other hand, and in the most likely scenario, the USD/CAD first resistance would be the 1.3600 psychological level. A breach of the latter will expose the year-to-date (YTD) high at 1.3665, followed by the 1.3700 figure, and then the November 3 daily high at 1.3808.
USD/CAD Daily chat
USD/CAD Technical levels