In the European session, the USD / CAD pair is trading in the area of 61.8% of the Fibonacci retracement, around 1.2396. This level is a key resistance zone, since on previous occasions CAD has fallen below this level.

USD / CAD is above the 21 SMA and above the 5/8 murray showing bullish bias, although the eagle indicator is showing a negative divergence signal, which is likely to be a correction towards the zone of 1.2336 (SMA 21). The pair is expected to make a bounce off this level and continue its upward movement to the level of 1.2450 (6/8 of murray).

Yesterday the Loonie weakened due to strong demand for the US dollar and a decline in oil prices. Now the level of 61.8% could set the stage for a correction and the price will continue with the overall downward cycle that originated in the zone of resistance of 6/8 of murray.

According to the chart, if CAD breaks the 21 SMA, a fall is expected to the 4/8 Murray support zone located at 1.2207. On the contrary, a bounce at this level will be considered an opportunity to buy.

On Friday the US Non-Farm Payrolls (NFP) will be published. If this data is better than expected for the US dollar, it is likely that CAD could extend its weakness and rise to the 1.2500 psychological zone against USD. On the contrary, a fall to the support of the 200 EMA located at 1.2464 could occur.

Our recommendation is to sell below 1.2396, the 61.8% Fibonacci zone, and buy at the 21 SMA zone around 1.2336. The eagle indicator is showing a bearish signal.

Support and Resistance Levels for June 30, 2021

Resistance (3) 1,2493

Resistance (2) 1,2447

Resistance (1) 1,2420

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Support (1) 1,2343

Support (2) 1,2302

Support (3) 1,2268

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Trading tip for USD/CAD for June 30, 2021

Sell below 1.2396 (61.8%), with take profit at 1.2336 (SMA 21), stop loss above 1,2435

Buy if rebound 1.2336 (SMA 21), with take profit at 1.2393 and 1.2451 (6/8), stop loss below 1,2300.