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USDCAD Breaks Below the Major Support

usdcad Bank Of Canada
usdcad Bank Of Canada

USDCAD has broken below the major support of $1.3150, paving the way for more losses as Canadians head to the polls on Monday. The price action is currently testing the 200 DMA. In case of a break, the bears are likely to take the price action lower to the major horizontal support awaits at $1.3070, closely followed by the annual low of $1.3015.

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The major ascending trend line got broken on Thursday. In the usual manner, the bulls retested the underside of the trend line, however the bears remained in full control as the new week started in the red for USDCAD.

The next major support is just above the $1.3100 handle where the 200 DMA is located. The 200 DMA is joined by its close friend the 100 DMA, currently sitting at $1.3086. Furthermore, the major horizontal support that has played an important level in the past is located around the $1.3070 mark. The 1-year low sits at $1.3015.

Besides the election results, look out for the quarterly Business Outlook Survey from the Bank of Canada (BOC), scheduled for release on Tuesday.Download our latest quarterly market outlook for our longer-term trade ideas.

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