Greenback’s getting weaker this week to the Canadian dollar. As can be seen in the USD/CAD weekly chart below, the exchange rate has once again rebounded to its key resistance at 1.3505 and has already abolished the profits of the previous 6 weeks. Where can the quotes go from here?
Currently, the price is testing the confluence zone of support, where three significant levels meet:
Horizontal support at 1.3380
an upward trend line starting from the 2018 hole
accelerated upward trend line from this year’s lows.
The further direction of USDCAD quotations depends on the test results of the above-mentioned levels. As long as the closing of the daily/weekly candles remains above the zone, there is still a chance to rebound in the direction of 1.3505.
Alternatively, the successful overcoming of support confluence would open the way to another key zone which stretches from 1,3070 to 1,3130.
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