• USD/CAD struggles at the 20-day EMA and tumbles towards the 1.3530 area.
  • USD/CAD Price Analysis: Oscillators offering mixed signals, but price action stalling at crucial EMAs to keep the pair rangebound.

The USD/CAD advance stalled at the 20-day Exponential Moving Average (EMA) at 1.3570 and dropped toward the 50-day EMA as the US Dollar (USD) weakened, while crude oil extended its recovery, a tailwind for the Canadian Dollar (CAD). At the time of writing, the USD/CAD is trading at 1.3530.

USD/CAD Price Analysis: Technical outlook

From a daily chart perspective, the USD/CAD dropped to fresh two-day lows but shy of the weekly low of 1.3484. During the last five trading days, the 20-day Exponential Moving Average (EMA), around 1.3570, capped the USD/CAD recovery towards the 1.3700 figure. And since mid-December, the USD/CAD embarked on successive series of lower highs/lows as the major consolidated ahead of the year’s end.

The Relative Strength Index (RSI), at bearish territory, keeps USD/CAD sellers hopeful for further downside, while the Rate of Change (RoC), suggests selling pressure is waning. Therefore, unless the USD/CAD decisively breaks below 1.3484, that could open the door for further losses. The next support would be the 100-day EMA at 1.3416, ahead of the 1.3400 figure, and the 200-day EMA at 1.3215.

As an alternative scenario, the USD/CAD first resistance would be the 20-day EMA at 1.3570. Once cleared, the next resistance would be 1.3600, followed by the 1.3700 mark.

USD/CAD Key Technical Levels

This article was originally published by Fxstreet.com.Read the original article here.

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