USD/CAD Price Analysis: Poised for continued losses after breaking support trendline, YTD low in sight
- USD/CAD continues its downward trajectory, trading at 1.3207, showing minor losses of 0.01%.
- A break below 1.3200 may open the way to YTD lows, with RSI indicating oversold conditions.
- If USD/CAD trades above the May 8 daily low of 1.3314, the pair could stabilize, with the 20-day EMA at 1.3357 as the first resistance.
USD/CAD trimmed some of its losses last Friday on Monday, though as the Asian session begins, it is poised to extend its ongoing losses during the previous three weeks. The USD/CAD is trading at 1.3207, down 0.01%, after hitting a weekly high of 1.3229.
USD/CAD Price Analysis: Technical outlook
During the last week, the USD/CAD broke a support trendline drawn from 2022 November lows, surpassing around 1.3314. That exacerbated the USD/CAD fall to new year-to-date (YTD) lows of 1.3177 before rebounding above 1.3200.
It should be said the pair bias is downward, but if the USD/CAD trades above the May 8 daily low of 1.3314, that could pave the way for sideways action. If that outcome continues, the USD/CAD first resistance would be the 20-day Exponential Moving Average (EMA) at 1.3357, followed by the 200-day EMA at 1.3405.
Conversely, if USD/CAD drops below 1.3200, further downside is expected, with the pair challenging the YTD low, followed by the September 13 low of 1.2954.
Notably, the Relative Strength Index (RSI) portrays the pair as oversold, while the three-day Rate of Change (RoC) indicates the pair is heading downwards.
USD/CAD Price Action – Daily chart
