USDCAD Forex Technical Analysis for June 20, 2016
Forex Technical Analysis – The USD/CAD pair fell initially during the course of the session on Friday, but turn right back around to form a hammer. There is a shooting star from the Thursday session, so having said that it looks as if the downward pressure still continues. If we break down below the bottom of the candle from the Friday session, I believe that the market will continue to go lower and perhaps reach towards the 1.2650 level from here. Pay attention to oil, it has quite a bit of an influence when it comes to the Canadian dollar.
In Other View Point – Almost complete corrective structure
Good morning traders, finally this pair shows a very nice structure after a impulse. I aspect a move down and then a big move up.
In Other View – USD/CAD sold-off amid higher oil and broad USD selling
The offered tone around the US dollar keeps growing bigger as we move towards early Europe, knocking-off USD/CAD closer towards 1.28 handle.
USD/CAD drops below 10-DMA at 1.2845
Currently, the USD/CAD pair trades -0.47% lower at fresh session lows of 1.2832, having faced rejection just below 1.29 barrier. The USD/CAD pair extends its bearish momentum into early Europe, largely weighed down higher oil prices, which continue to underpin the resource linked-Loonie. Both crude benchmarks rally nearly 1% as demand for risky assets return on fading Brexit concerns.
While increased selling pressure behind the US dollar against its major peers, particularly the EUR and GPB amid Bremain news, also drags the USD/CHF deep into the red.
USD/CAD Technical Levels
To the upside, the next resistances are seen near 1.2887/92 (daily R3/ 5-DMA) and 1.2970 (Jun 17 High). To the downside, immediate support might be located at 1.2800 (key support) and below that at 1.2747 (Jun 13 Low).