Key Highlights
- USD/CAD started a fresh decline from the 1.3750 resistance.
- It traded below a key bullish trend line with support at 1.3670 on the 4-hour chart.
- EUR/USD rallied above the 1.0750 resistance zone.
- Gold prices were able to surpass the $2,350 resistance.
USD/CAD Technical Analysis
The US Dollar struggled to continue higher above 1.2750 against the Canadian Dollar. USD/CAD started a fresh decline and traded below the 1.2700 support zone.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 1.3670. The pair settled below the 1.3650 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
There was a move below the 76.4% Fib retracement level of the upward move from the 1.3619 swing low to the 1.3755 high. Immediate support is near the 1.3620 level.
The next major support is near the 1.3600 level. A downside break and close below the 1.3600 support zone could open the doors for more losses. In the stated case, the pair could decline toward the 1.3500 level.
On the upside, USD/CAD might face resistance near the 1.3650 level. The next resistance sits at 1.3670. The main hurdle sits at 1.3700. A clear move above the 1.3700 resistance might send it toward the 1.3750 level. Any more gains might open the doors for a test of the 1.3880 zone in the coming days.
Looking at EUR/USD, the bulls took control, and they were able to push the pair above the 1.0750 and 1.0780 resistance levels to set the tone for a decent upward move.
Economic Releases
- UK’s Parliamentary Election.
- Swiss CPI for June 2024 (YoY) – Forecast +1.4%, versus +1.4% previous.
