Breakout alert!
USD/CAD is trading juuust under a major support level!
Will this mean more losses for USD/CAD?
USD/CAD: Daily
As you can see, USD/CAD is already trading below the 1.3300 psychological level that has been supporting the pair since November 2022.
Keep in mind that the pair had already broken below a key trend line support a couple of months back.
What makes the daily chart even more interesting today is that its 100 SMA is showing a bearish SMA crossover against the longer-term 200 SMA.
Are we looking at a reversal in the making?
Before you sell USD/CAD like there’s no tomorrow, you should note that Stochastic is already showing an “oversold” signal.
Not only that, but the breakout candle is still not too far from the broken range support zone, which means that we could still see USD/CAD returning to its longer-term range.
Selling at current levels or at the confirmation of the next candlesticks would make for a good play if you’re convinced that USD is about to take more hits against CAD.
The 1.3060 previous high is a good initial target, but you can also eye the 1.2900 levels if there’s enough momentum.
Don’t believe that the dollar could lose even more pips against the Loonie?
You can also wait for USD/CAD to return to its range before targeting previous inflection points like 1.3450 or 1.3640.
