USDCAD Technical Analysis – 18-June-2024

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FxNews—The U.S. Dollar is in an uptrend against the Canadian dollar, trading at about 1.374 in today’s trading session. Currently, the USD/CAD currency pair tests the descending trendline and the 61.8% Fibonacci retracement level at 1.374.

The 4-hour chart below demonstrates today’s USD/CAD price, the Fibonacci levels, and the technical tools used in today’s analysis.

USDCAD Technical Analysis - 18-June-2024

USDCAD Technical Analysis – 18-June-2024

USDCAD Technical Analysis – 18-June-2024

The technical indicators in the 4-hour chart suggest the USD/CAD primary trend is bullish, but currently, it lacks significant momentum and is trading sideways.

USDCAD Technical Analysis - 18-June-2024

USDCAD Technical Analysis – 18-June-2024

  • The USD/CAD price is above the simple moving averages of 50 and 100, meaning the bullish trend prevails.
  • The awesome oscillator indicator bars are small, red, and below zero, signifying the bullish momentum weakening.
  • The relative strength index indicator hovers alongside the median line, showing 52 in the description, suggesting the market is moving sideways and has no significant trend.
  • The stochastic oscillator value is 33, pointing to the fact that the market is not overbought or oversold.

USDCAD Price Forecast – 18-June-2024

USDCAD Price Forecast - 18-June-2024

USDCAD Price Forecast – 18-June-2024

Immediate resistance is at 1.375, slightly above the descending trendline and the 61.8% Fibonacci. The price is declining from the trendline at the moment, moving toward the apex of the symmetrical triangle.

From a technical standpoint, for the primary trend to resume, bulls must close and stabilize the price above the immediate resistance at 1.375. If this scenario unfolds, the 78.6% Fibonacci at 1.379 will be the next resistance area. Furthermore, if the buying pressure exceeds 1.379, April’s all-time high at 1.384 will likely be tested again. 

The ascending trendline and the %50 Fibonacci level at 1.371 support the bullish scenario. The bullish scenario should be invalidated if the USD/CAD price dips below 1.371.

USD/CAD Bearish Scenario

The key resistance level is at the 50% Fibonacci level, the 1.371 mark. If the U.S. dollar price dips below 1.371 against the Canadian dollar, the bearish momentum from June 11 from 1.379 will likely test the 38.2% Fibonacci at 1.368.

Furthermore, if the selling pressure exceeds 1.368, the 23.6% Fibonacci will be the next resistance area.

USD/CAD Key Support and Resistance Levels

Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.

  • Support: 1.371 / 1.368 / 1.365
  • Resistance: 1.357 / 1.379 / 1.384

Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.

  • 2024-06-18