USD/CAD Daily Forecast – Multi-Frame Analysis Showing Bear Dominance

On a broader view, the USD/CAD pair was approaching the apex of a multi-year symmetrical triangle. On the weekly chart, the Loonie pair was forming a rising wedge trading pattern. Such a pattern signals for an upcoming bearish trend.
Nikhil Khandelwal
Canadian Money

The USD/CAD pair marked the daily opening on Monday near 1.3170 level with a Doji Candlestick formation, generating a trend reversal price action. However, the bears could drag the Loonie pair only up to 1.3158 level. From there, the bulls grabbed the opportunity to uplift the pair, making it reach the daily high near 1.3183 level.

In the meanwhile, Canada’s top export item, Crude Oil was heading south in the Asian trading session. The commodity’s price value slipped on the backdrop of easing US-Iran tensions over the positive outcome of the weekend talks between the parties. Investors also jitter over the upcoming US-Sino trade talk scheduled this week.

Significant Economic Events

Today, the economic calendar stays light-weighted amid the absence of significant economic events. However, quite a few low volatile USD-specific events might attempt to impact the pair’s daily movements. At around 14:30 GMT, the July Dallas Fed Manufacturing Business Index will come out. The Street analysts keep a bullish stance over this July Fed statistics this time. The consensus estimate this Index to report -5.0 points over the -12.1 points forecasts.  Also, later the day, the 3-Month and 6-Month Treasury Bill Yield release remain under the traders’ watch list.

Notably, there remains no CAD-specific or Oil-catalyst events on Monday’s trading session.

Technical Analysis

1-Month Chart

On a broader view, the USD/CAD pair was approaching the apex of a multi-year symmetrical triangle.

USDCAD 1 Month 29 July 2019

At any point, traders can expect an abrupt change in the pair’s regular price actions. Anyhow, both the upside and downside seemed to remain packed with some substantial barriers. Firm 1.3012 resistance-turned-support handle ensured pair’s downward moves. If at all the pair breaks and moves below this aforementioned support line, the next target would point to the symmetrical triangle. While on the north side, healthy resistance levels remain stalled near 1.3457, 1.3697, and 1.4103 levels.

1-Week Chart

On the weekly chart, the Loonie pair was forming a rising wedge trading pattern. Such a pattern signals for an upcoming bearish trend.

USDCAD 1 Week 29 July 2019

The pair was struggling to move above 1.3202 level in order to justify the rising wedge. Even if the pair makes a triumphant march above the aforementioned resistance mark, then the next 1.3589 resistance would get activated.

1-Day Chart

The USD/CAD pair had showcased an upward drift, making a breakout through a 2-month old descending trend channel. However, the market appears to ignore such catchy price action, considering the Death Cross taken place on July 17.

USDCAD 1 Day 29 July 2019

Anyhow, chances of a downtrend remain in the cards as the pair had also formed a Spinning Top candlestick pattern. Meantime, the Relative Strength Index (RSI) was pointing towards 52.74 levels, revealing a neutral buyers’ interest.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.