Bearish trend continues as USD/CAD hits resistance at 1.2641
The USD/CAD pair has been facing a bearish trend recently, and it seems like it is not willing to give up just yet. As the pair reached a crucial level of resistance at 1.2641, it was unable to break above it, indicating a continuation of the downtrend. This resistance level has been a major hurdle for the pair, and if it fails to break through it, we may see further decline in the coming days.
Target set at 1.2534 as USD/CAD shows signs of continued decline
As the bearish trend in the USD/CAD pair persists, analysts have set a target at 1.2534. This level is seen as the next key support area for the pair, and if it breaks below it, we could see a further decline. The signs of continued decline are evident in the recent price action, as the pair has been unable to gain any significant upward momentum.
Support at 1.2500 area may be the next level to watch for
After setting the target at 1.2534, analysts are now eyeing the support level at the 1.2500 area. This support level has proven to be significant in the past, and if the pair breaks below it, it could open the door for further declines. Traders and investors will be closely watching this area for any signs of a reversal or a potential breakdown.
USDX holds the key to USD/CAD’s future direction
The USD/CAD pair is closely tied to the movements of the USDX, which measures the value of the US dollar against a basket of major currencies. The current direction of the USDX will play a crucial role in determining the future direction of the pair. Therefore, keeping an eye on the USDX and its movements will be essential for traders to gauge the potential for further decline or a possible reversal in the USD/CAD pair.
Average daily true range suggests potential for further volatility
The average daily true range (ATR) for the USD/CAD pair indicates the potential for further volatility in the coming days. With an ATR of 102 pips per day and a 90-day average of 92 pips per day, the pair is expected to see significant price movements. This volatility can present opportunities for traders to capitalize on short-term price swings, but it also adds a level of risk and uncertainty to the market.
In conclusion, the USD/CAD pair remains bearish as it faces resistance at 1.2641. The target has been set at 1.2534, with the support level at the 1.2500 area being the next key level to watch for. Traders will need to keep a close eye on the USDX for direction, as it holds the key to the pair’s future movement. Additionally, the average daily true range suggests the potential for further volatility, creating both opportunities and risks for traders.
Analyst comment
Neutral
As an analyst, it is likely that the market will continue to experience a bearish trend for the USD/CAD pair. The resistance at 1.2641 has proven to be a major obstacle, and if the pair fails to break above it, we can expect further decline in the coming days. Traders should keep an eye on the target at 1.2534 and the support level at 1.2500, as well as monitor the movements of the USDX for potential direction. The average daily true range indicates the potential for increased volatility, which can present both opportunities and risks for traders.
