CAD – USD/CAD probes the resistance of the trend line, brewing a counterattack

The trend of USD/CAD has failed to break through the 1.40 for several days since mid-May, and has been falling repeatedly since then. It just fell to an eight-month low of 1.3537 last Monday; however, with the rebound of the U.S. dollar, USD/CAD rebounded sharply on Tuesday, and also led to a significant rise in the RSI and stochastic index, indicating that the chance of bottoming out and rebounding has increased. At present, we can pay attention to the downward trend line extending from April, which is currently at the 1.3710 level. That is, if the exchange rate clearly breaks through this area in the next market, it is expected that USD/CAD will usher in a more obvious rebound. For the time being, based on the cumulative decline since May, the rebound range of 38.2% and 50% can be seen at 1.3720 and 1.3775, and the expansion to 61.8% is 1.3835. In addition, the 250-day moving average of 1.3965 and the 1.40 are still an important basis. As for the supporting level below, it will look back to the 1.36 and 1.3550 levels. The next level is 1.35, and then pay attention to the low of 1.3418 in September last year.

Forecast range:
Resistance 1.3710* - 1.3775 – 1.3835 – 1.3965 - 1.4000*
Support 1.3600 - 1.3550 – 1.3500 – 1.3418

Focus:
Tuesday:
Canada May CPI (20:30)

Friday:
Canada April GDP (20:30)

Any questions? contact our professional analysis team