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USD/CAD Looks Set for Fresh Climb

June 30, 2022

  • USD/CAD tested resistance near 1.3080.
  • Bullish trend line broken near 1.2975.

The US Dollar, Canadian Dollar pair corrected lower after testing resistance near the 1.3080 level. USD/CAD broke below a bullish trend line near 1.2975. 

USD/CAD 4-Hour Chart (Trend: BULLISH)

On the 4-hour chart, the USD/CAD pair started to decline from the 1.3080 level. The quote gained momentum after breaking below 1.3000. Strong support was found near 1.2820, which is also close to both the 100-MA (red) and 200-MA (blue). The quote has since corrected higher and is currently trading near 1.2900 and the 23.6% Fibonacci retracement level of the downward move from the swing high of 1.3079 to the swing low of 1.2819. 

For the pair to continue bullish, the quote will first need to test resistance near 1.2920, which is also close to the 38.2% Fibonacci retracement level (of the 1.3079 high to the 1.2819 low). Above this there is further resistance near 1.2950 and the 50% Fibonacci retracement level (of the 1.3079 high to the 1.2819 low). Further gains could see the quote climb back up towards the 1.3000 level. 

In contrast, if the pair turns bullish, the quote will first need to test support near 1.2880 and the 100-MA (red). Below this there is further support near 1.2800 and the 200-MA (blue). A break here could take the quote back down towards the 1.2700 level. Further losses could see the quote down as far as 1.2520.


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