FX.co ★ Technical analysis of USD/CAD for July 07, 2022

Yesterday, the USD/CAD pair traded in different directions in the range of 1.3082 - 1.2818 and closed the day without significant changes. Today it fell a little, dropping from the top price of 1.3082 to 1.2965. On the hourly chart, the USD/CAD pair is still trading below the MA (100) H1 moving average line (1.2965). The situation is similar on the four-hour chart. Based on the foregoing, it is probably worth sticking to the north direction in trading, and as long as the USD/CAD pair remains below MA 100 H1, it may be necessary to look for entry points to buy for the formation of a correction. The USD/CAD pair slides below 1.3082 mark amid rebounding oil prices, modest USD weakness. The USD/CAD pair maintained its offered tone through the early European session and slipped below the 1.3082 psychological mark, hitting a fresh daily low in the last three hour at the price of 1.2965.

Technical outlook :

The USD/CAD pair faced resistance at the level of 1.3082, while minor resistance is seen at 1.3024.

Support is found at the levels of 1.2950 and 0.9521. Pivot point has already been set at the level of 1.2880.

Equally important, the USD/CAD pair is still moving around the key level at 1.2950, which represents a daily pivot in the H1 time frame at the moment.

Yesterday, the USD/CAD pair continued moving downwards from the level of 1.3082. The pair fell to the bottom around 1.2950 from the level of 1.3024 (coincides with the ratio of 78% Fibonacci retracement).

In consequence, the USD/CAD pair broke support, which turned into strong resistance at the level of 1.3024.

The level of 1.3024 is expected to act as the major resistance today. We expect the USD/CAD pair to continue moving in the bearish trend towards the target levels of 1.2919 and 1.2880.

On the downtrend: If the pair fails to pass through the level of 1.2880, the market will indicate a bearish opportunity below the level of 1.2880. Moreover, a breakout of that target will move the pair further downwards to 1.2818 in order to form the double bottom. So, the market will decline further to 1.2818 and 1.2950 to return to the daily pivot point.

On the other hand, if a breakout happens at the support level of 1.2950, then this scenario may be invalidated.