Technical analytics

Fibonacci analysis of USD/CAD


Downside risks dominated the USD/CAD exchange rate on Friday. The US dollar remained weak and extended its losses. The spot started the day at 1.3480. The bearish momentum was strong enough to push the price below 1.3450 and the Fibonacci level of 23.6% to the 1.3400. This barrier did not stop sellers who dragged the spot to the 1.3370 area where the EMA200 saved bulls and stopped the sell-off. A fresh bearishness emerged in the Asian session on Monday. The spot continued its slide and reached 1.3350 The EMA50 turned bearish and headed lower, while the EMA200 is still positive. by the morning. MACD remained at the same level which confirms the strength of sellers. The resistance stands at 1.3400, the support is at 1.3350.

USD/CAD will remain modestly bearish in the short-term. Sellers are targeted to reach the 1.3350-1.3430 support area where the 38.2% Fibonacci retracement is located. We do not rule out a pull back to the 1.3430 area.