USD/CAD has experienced a recent decline after facing resistance at the 1.3750 level. The pair broke below a significant bullish trend line with support at 1.3670 on the 4-hour chart. This movement indicates a bearish potential for USD/CAD.
Analyzing the technical aspects, the US Dollar struggled to maintain momentum above 1.2750 against the Canadian Dollar. The pair dropped below the 1.2700 support zone and key moving averages. It also breached the 76.4% Fib retracement level of the upward swing from the 1.3619 low to the 1.3755 high.
Immediate support for USD/CAD is seen around the 1.3620 level, with the next major support at 1.3600. A downside break below 1.3600 could lead to further losses, potentially towards the 1.3500 level. On the upside, resistance levels are at 1.3650, 1.3670, and the main hurdle at 1.3700. A clear break above 1.3700 could push the pair towards 1.3750 and even higher to 1.3880 in the near future.
In contrast, EUR/USD saw a rally above the 1.0750 and 1.0780 resistance levels, indicating bullish strength in the pair. This positive movement in EUR/USD could impact the dynamics of USD/CAD as well.
Additionally, economic events such as the UK’s Parliamentary Election and Swiss CPI data for June 2024 are important factors to monitor. These releases could introduce volatility and influence trading decisions in the forex market.
Overall, the decline in USD/CAD suggests a bearish outlook for the pair, while the rally in EUR/USD reflects a bullish sentiment. Traders should pay attention to key support and resistance levels to navigate potential trading opportunities in the forex market.