Daily Price Action

USDCAD Tests Key Resistance at 1.3320


USDCAD is testing a significant resistance level today.

I’ve mentioned the 1.3320 area several times in recent weeks. First on January 8th and again this past Sunday.

You can see how it has served as a pivot of sorts since the November 20, 2018 high.

The 1.3320 area is also very near the 38.2% Fibonacci of the range that extends from the October 2018 low to the December high.

All of this follows the breakdown I mentioned on January 3rd.

The larger channel I pointed out in that commentary suggests we could see USDCAD continue lower.

First up is the 1.3060 horizontal support level. It was a key factor since June of last year.

In my opinion, this is where USDCAD is likely headed next.

But it all depends on whether or not the 1.3320 resistance area can hold on a daily closing basis.

Keep in mind that I use New York close charts so that each 24-hour session closes at 5 pm EST.

Go here to get access to the same charts I use for trading price action.

If it doesn’t hold, we could see USDCAD extend higher toward former channel support (new resistance) just above the 1.3400 handle.

Given the recent sideways price action, it would make sense to wait for a bearish signal of some sort.

It could be a pin bar or perhaps an eventual engulfing candle.

Regardless, USDCAD is vulnerable while below the 1.3320 level.

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USDCAD key resistance area

Leave a Comment:

Dee says

Thank you sir

Bogatsu says

It does look like the pair wants to go down with a re-touch of resistance but my only concern is that the trend seems bullish from the weekly chart. This started in Sep 2017 and we’ve had a series of HH & HL which seems to indicate that the current move might be limited (maybe to 1.3060 as per article). Not that I won’t short the pair if a signal appears…

Babar says

This is buy signal?

Sweet Connections says

“If it doesn’t hold, we could see USDCAD extend higher toward former channel support (new resistance) just above the 1.2400 handle.”

Please clarify

    pips says

    i guess he meant 1.34

      Sweet Connections says

      Wow hey went right to the plan hey and looks like it

Praise says

Thanks very much sir.

Sandi (member) says

I will wait till close of day, to see if we have a more bearish look.
Thanks for all your advise and knowledge.

Ruth says

Thank you Justin 🙏

Trond Midtun says

Hi Justin. Thanks so much for all your work, have learned a lot from you. I do not understand how you have time to write all the analyzes. Do you work as a full-time trader or do you have other work as well? I have a question, if oil prices rise then Cad will also be stronger, yes?

Pierre Mifsud says

Honestly at a crossroad at the moment. If it breaks the resistance 1.3320 than 1.359 is possible

Gerald Mukere says

Thank u for the analysis. It has just confirmed flags for shorts which i took yesterday. There seems to be a downward trend on the monthly chart also confluenced by flags(short signal) of the same, the same case presents its self for the daily chart also with flags(short signal).

There is possibility of a further break out below the 1.3060 which im gonna be watching out for. Reason being the last resistance on the upper line of the trend line channel confluences (or at least closely) the resistance for the monthly chart.

Douglas says

Thank you sir

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