Usdcad Touches 9 Month Low At 13137

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Usdcad Touches 9 Month Low At 13137

USD/CAD Touches 9-Month Low At 1.3137

Since last month (May), USDCAD has been under heavy bearish pressure and is making lower lows and lower highs. In addition, the technical outlook is now looking more grim now that the symmetrical triangle pattern has been broken from the downside.

After the bearish breakout from the triangle pattern, the USD/CAD pair refreshed a 9-month low and was last seen near 1.3137. If we look at the momentum indicator on USD/CAD, it tells us that the short-term trend is bearish.

USDCAD: RSI Stays Red

The RSI indicator on the USD/CAD momentarily entered the oversold zone before getting out of it. This has cooled down the indicator value, but it still continues to print bearish numbers. Similarly, the MACD indicator also suggests that the USD/CAD trend is titled toward the downside.

Based on these technical numbers, the bears may push USD/CAD towards the support present at 1.3137. Once that solid support is gone, it will turn into resistance and thus force USD/CAD toward the 1.3074 price level or even lower. If the 1.3074 is pierced, the next stop for the USD sellers will be 1.2960 (low of September 2022).

And even if the 1.2960 is crossed by the USD/CAD sellers, the next support will be 1.2727 which is also the low of August 2022.

On the contrary, there's very little chance of any upside, but any support that's pierced will turn into resistance. In this case, all the above-mentioned levels will start to serve as the resistance.

If the USD/CAD buyers garner strength, the nearest resistance will be 1.3225 which is the support of November 2022. Similarly, the next important resistance is 1.3319 which was the support during May.

Over all, the current sentiment in USD/CAD is bearish after the breakout from the triangle pattern. Looking ahead, the 1.3000 price level will play a pivotal role in determining the next direction of USD/CAD. However, a rate hike from the Fed at the July meeting could turn things around for the USD/CAD by boosting the US Dollar.

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