USD/CAD bulls have been unable to move above the 1.3100 resistance area for nearly two weeks. At the time of writing, the pair is currently trading around 1.3011. The 1.2977 is a strong intraday support level, and a breach below this level will likely send the pair further lower towards the next support at 1.2944. On the upside, 1.3062 is the immediate resistance level, while the next substantial resistance area is near 1.3112. Yesterday’s closing has formed a shooting star pattern that further favors the bearish bias.
USD/CAD Technical Analysis Snapshot (short-term)
The RSI, Stochastic, and Bollinger bands are currently neutral, while the ATR indicates lower volatility in the upcoming sessions. However, the moving averages indicate strong resistance zones as the current price keeps below the 20, 50, and 100 periods of simple moving averages.
| Stochastic | Bollinger Bands | ATR | MACD | RSI |
| Neutral (74) | Neutral (1.3011) | 0.0079 (Volatility down) | Above Zero | 56 (Neutral) |
Related Article: EUR/USD Flirts around 1.1050 with a bearish outlook
USD/CAD Short-Term Support and Resistance levels
| Support 1 | Support 2 | Support 3 | Resistance 1 | Resistance 2 | Resistance 3 |
| 1.2977 | 1.2942 | 1.2892 | 1.3062 | 1.3112 | 1.3147 |
FXDatapanel High-end trading algorithms automatically calculate the support and resistance levels based on historical data.
“USD/CAD Trading Idea” – Short-term – 30-August-2022
USD/CAD Signal Strength: Normal
Fxdatapanel trade signals platform classifies the Forex Trade signals into three different levels or categories. These levels are Average, Normal, and Strong. An average trade signal carries more risk than a normal or strong signal. Likewise, a strong signal is more likely to produce positive results than a normal or average trade signal.
Direction: Sell
Entry:1.3035
Stop-loss: 1.3115
Take Profit: 1.2956
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USD/CAD Important Levels To Watch
Bulls require an intraday closing above 1.3070 to gain upwards traction in the coming days, and failing to achieve that will further strengthen the bears. On the downside, an intraday closing below 1.2977 would indicate a further drop in the coming days.
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