USD/CAD Price Analysis: Double-top emerges, targeting 1.2930
- USD/CAD prepares to finish the week with decent losses of 0.27%.
- Failure at around 1.3200 spurred a double-top formation in the USD/CAD daily chart, which targets 1.2930.
- The USD/CAD in the near term is also downward biased.
The USD/CAD slides for the second consecutive day, tumbling to fresh weekly lows at around 1.3077, after failing to break the YTD high at 1.3227 twice in September. At the time of writing, the USD/CAD is trading at 1.3089, above its opening price, as the Asian Pacific session begins.
USD/CAD Price Analysis: Technical outlook
The USD/CAD daily chart indicates the pair is neutral-upwards biased. Nevertheless, price action during the last seven days witnessed a double-top formation, meaning that downside risks remain. Therefore, the USD/CAD first support would be the neckline at around 1.3074. A break below will expose an upslope trendline that passes around 1.3060, followed by the 20-day EMA at 1.3029. Once cleared, the next demand zone would be the 50-day EMA at 1.2952, followed by the double-top target at 1.2930.
Short term, the USD/CAD 4-hour chart depicts a trendline break, which also confluences with Friday’s daily pivot point at around 1.3110. However, a break below 1.3077 would exacerbate a move towards the confluence of the S1 daily pivot and the 100-EMA around 1.3048-60, which, once cleared, would pave the way towards the S2 pivot point at 1.3037, followed by the S3 daily pivot at 1.2975.
USD/CAD Key Technical Levels