**USD/CAD Weekly Technical Outlook: Analysis and Forecast**
Originally reported by ActionForex.com
The USD/CAD currency pair has exhibited notable price action in recent sessions, influenced by a combination of technical dynamics and macroeconomic variables. The pair experienced volatility amid geopolitical risks, fluctuating oil prices, and evolving macroeconomic narratives between the United States and Canada.
This article presents an in-depth technical outlook of USD/CAD for the coming week, supplemented with additional analysis from leading Forex sources. We assess the broader trend, key support and resistance zones, indicators, and potential market drivers. This outlook aims to arm traders with key insights for making informed trading decisions.
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**USD/CAD Weekly Chart Overview**
USD/CAD ended the previous week slightly lower, sustaining within a broader consolidation pattern. While recent sessions have seen bounces off key support levels, price action remains trapped in a range that could break in either direction depending on upcoming developments.
– The pair remains above 1.36 in a broader holding pattern
– Price has struggled to sustain momentum above the 1.38 area
– 100-week and 200-week moving averages are providing longer-term support beneath current price
– The pair remains above an ascending trendline that has held since mid-2021
The technical picture suggests limited short-term momentum but potential for significant medium-term movement.
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**Key Technical Indicators**
Several technical indicators are influencing sentiment around USD/CAD. Let’s unpack the current readings from commonly-watched indicators:
1. **Relative Strength Index (RSI):**
– Weekly RSI stands neutral near 55, indicating absence of overbought or oversold conditions
– There is still some bullish divergence on lower timeframes
– Price action remains tethered to key moving averages, suggesting ongoing equilibrium
2. **MACD (Moving Average Convergence Divergence):**
– Weekly MACD shows signs of flattening after previous bullish crossover
– Histogram bars are decreasing, pointing to waning bullish momentum
– A crossover beneath the signal line could push the pair lower
3. **Fibonacci Levels:**
– Retracement from the June 2021 low to October 2022 high shows:
– 38.2% support near 1.3420
– 61.8% retracement resistance near 1.3850
– The pair seems to obey these levels as potential reversal zones in medium-term plays
4. **Moving Averages:**
– 50-week SMA lies at approximately 1.3580, offering dynamic support
– 200-week SMA sits near 1.3400, which continues to act as a key long-term anchor
– Traders will watch for crossover signals which could indicate trend reversals
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**Resistance and Support Zones**
Key price levels are defining the trading boundaries for USD/CAD in the weekly outlook. These serve as critical areas where bulls and bears could engage in significant price battles.
– **Immediate Resistance:** 1.3780 to 1.3800 range
– **Next Resistance Zone:** 1.3860 to 1.3900, previous highs from late 2022, multi-year resistance
– **Psychological Resistance:** 1.4000, major round number and a 5-year high
– **Short-Term Support:** 1.3600 to 1.3640, recent swing lows and fib cluster
– **Critical Support Zone:** 1.3500; breach here may trigger accelerated declines
– **Major Long-Term Support:** 1.3400, coinciding with 200-week SMA and 38.2% retracement
Traders will likely keep a close eye on the 1.36 and 1.38 handles for evidence of breakout confirmation or further consolidation.
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**Daily Chart Setup**
On the daily time frame, the pair has formed a minor head and shoulders topping pattern. If confirmed
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