Canada Markets closed

USD/CAD Daily Forecast – Bulls Targeting 1.3380 Critical Resistance

Nikhil Khandelwal

After arousing from 1.3230 level in the last North American session, the USD/CAD pair took an intermediate halt near 1.3300 psychological mark today. Anyhow, the bulls found a further way to the upside, touching 1.3309 level in the Asian session.

Greenback at the Top

USD Index was rebelliously making some strong upward price actions since the start of the month. Though the Greenback had undergone sharp plunges in the mid-way, the resilient bulls ensured to rebound quickly, staying above the Ichimoku Clouds.

US Dollar Index 1 Day 28 August 2019

Notably, the US Dollar was forming a large symmetrical triangle pattern. Today, the US Dollar Index was heading to the north side, aiming the upper portion of the aforementioned triangle. Nonetheless, any triumphant move to the upside breaching the triangle would immediately activate the resistances stalled near 98.45, 98.68, and 98.93 levels.

Significant Economic Events

The economic calendar remains light-weighted today amid the absence of significant driving economic events. Anyhow, the market remains attentive to the noteworthy speeches by Fed’s Barkin and Fed’s Daly.

Even today, the calendar lacks CAD-specific data releases. Nevertheless, EIA Crude Oil Stocks Change computed since August 23 might catch the trader’s interest. The street analysts expect the EIA Crude data to report -2.133 million over the previous -2.732 million.

Technical Analysis

1-Week Chart

On the weekly chart, the USD/CAD was underway to establish a positive closing for the week, breaching above the 1.3261 resistance mark. Notably, the pair had crossed below a robust slanting ascending trend line in mid-June.

USDCAD 1 Week 28 August 2019

Quite remarkably, laterwards, the bulls seemed to take back control over the pair’s future actions. Underlying Parabolic SAR kept providing additional ammunition to the bulls, allowing for more strong upside price actions. On the north-side, the pair might experience a strong resistive effect near 1.3424 and 1.3516 levels. Anyhow, a dive to the downside would enable fresh challenge to the near-by stalled 1.3027 support handle.

4-Hour Chart

The ATR technical indicator was predicting a 0.0025 level volatility in every four hours of the day. However, the ATR levels remain almost near the volatility quoted at the month start or lower levels.

USDCAD 240 Min 28 August 2019

Nevertheless, the USD/CAD pair had crossed above the center line of the Bollinger bands, moving into its upper vicinity. However, on marching further upside, the pair might encounter the healthy resistance stemmed near 1.3338 level. Meantime, the Stochastics indicator was displaying an overbought condition in the pair. If the pair rebounds and revisits the lower region of the Bollinger bands, then that would trigger for a steady downtrend in the upcoming sessions.

This article was originally posted on FX Empire

More From FXEMPIRE: