USD/CAD Daily Forecast – Multi-Frame Analysis Showing Bear DominanceOn 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.
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.
On a broader view, the USD/CAD pair was approaching the apex of a multi-year symmetrical triangle.
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.
On the weekly chart, the Loonie pair was forming a rising wedge trading pattern. Such a pattern signals for an upcoming bearish trend.
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.
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.
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.