Monday, July 24, 2017

The USD/CAD is stuck on the 200 week EMA

The US Dollar versus the Canadian Dollar has fallen to a very important support zone around the 1.2500 level as we can see on the weekly chart. The Greenback has been pressured to the downside lately by all the internal issues in the United States, while the Canadian Dollar has been supported by the recent rally on oil. On the weekly chart of the USD/CAD we can see that the 1.2500 zone has already acted as a support in the past and it may very well act again as a support, especially when the 200 week EMA is exactly at that level. The 200 period EMA usually acts as a good support or resistance zone, especially on the higher time frames like the weekly chart. If the USD/CAD manages to bounce to the upside from the 200 week EMA, then it could go and visit the 1.3000 level, which could act as a resistance. If the pair breaks to the downside, then the 1.2300 zone could act as its next support.

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