1.4700 is the next key resistance level: USD/CAD technical analysis
USD/CAD technical analysis shows that a major bullish breakout above the 1.4000 level has occurred. Bulls may soon test towards the pair’s multi-year high, around the 1.4700 level.
The US dollar has staged its strongest weekly advance against the Canadian dollar since 2015 last week, as buyers broke through the 1.4000 level.
USD/CAD analysis shows that the rally in the pair is showing few signs of stopping, with bulls testing towards major Fibonacci resistance, around the 1.4500 level.
USD/CAD medium-term price trend
The US dollar continues its breakout rally against the Canadian dollar, as oil prices slump and investors move into the greenback.
The USD/CAD pair is now trading at its highest level since early January 2016, with price rapidly advancing above the 1.4000 level.
USD/CAD technical analysis over the medium-term horizon shows the pair is testing long-term Fibonacci resistance, around the 1.4500 level.
The 78.6 Fibonacci retracement of the USD/CAD pair’s all-time high to all-time low is currently found around the 1.4500 level.
A sustained breakout above the 1.4500 level could provoke more gains towards key trendline resistance, around the 1.4650 level, and the multi-year high for the pair, around the 1.4700 level.
USD/CAD short-term price trend
USD/CAD analysis shows that the pair is technically bullish over the short term while trading above the 1.3450 level.
The 30-minute time frame shows that the recent breakout upside rally has created substantial amounts of bearish MACD price divergence.
Looking more closely at the 30-minute time frame, the bearish MACD price divergence extends down towards the 1.3850 technical region.
It is also noteworthy that the four-hour time frame is showing substantial amounts of negative price divergence on the Relative Strength Indicator. The RSI price divergence extends down towards the 1.3400 level.
With these factors in mind, traders should be cautious for a strong bearish corrective move once the USD/CAD pair reaches its eventual upside target.
USD/CAD technical summary
USD/CAD analysis shows that bulls could test towards the pair’s multi-year high, around the 1.4700 level. The recent rally has created bearish MACD and RSI price divergence on the lower time frames.