USD/CAD Price Analysis: The price breaks the wave low on the intraday chart and there are some other support zones to watch on the higher timeframes
- USD/CAD trades half a percent lower on Thursday.
- The greenback has struggled on the session and a strong oil price has helped CAD.
USD/CAD weekly chart
On the daily chart USD/CAD has nearly broken to a new wave low. The main support on the chart is 1.3314 and the Tuesday low stands at 1.3318. If the wave low breaks the chart below could help determine where the next support could be.
The black resistance line has been used on many occasions as both support and resistance. It is holding around the 1.32 area and there although the current zone is also firm the level at 1.30 could be even stronger. Also around the general area is the red upward sloping trendline. The trendline has three touches making it significant and a break would be a telling sign.
The Relative Strength Index is under the 50 line and heading to the oversold area. At the moment there is still room to move to the downside. The MACD is also looking bearish. The histogram is red and the signal lines are also about to cross the midpoint.
Overall, in the medium term, this is still a downtrend. A break of the aforementioned red trendline would confirm the bearishness. There could be some support at 1.32 but it could only be short term. Much will depend on how far this current dollar move south can continue.