USD/CAD Technical Update
The USD/CAD currency pair has mounted a serious recovery after forming multi-year lows this April. The potential is still there for subsequent increases, even though the currency pair has had little in the form of a move to the downside; the higher time frame charts reveal we are still running close to major support.
A technical analysis overview of USD/CAD follows below. Join us at our forex forum to look at this and other currency pairs.
USD/CAD Daily Chart Shows Parity Aligned With High and Low Timeframe Fib Confluence
- The USD/CAD double bottom has nearly reached the classical projection target located near the 1.0435 level.
- Price has now hit the confluence of the 1.0852 > 0.9406 wave down 61.8% retrace and FE100 expansion of 0.9406 > 1.0009 > 0.9725. The pair looks to be resonating with the Fibonacci levels at present.
- Any pullback, from this dynamic confluence level, could potentially see a retest of parity. The USD/CAD 1.000 level is closely aligned with the 38.2% retrace of 0.9406 > 1.0385 and a lower time frame 61.8% retrace which makes it an interesting area for USD/CAD bulls to look for price action setups.
- A failure to hold above parity would see price back in the range formed between the start of August thru mid September.
- Last weeks total range was 555 pips. This is a significant increase compared to the AWR over 26 weeks which is 209 pips.
USD/CAD Weekly Chart
