Technical Analysis – USDCAD explodes to a fresh 6-month high
October 6, 2023 8:27 am
USDCAD in an aggressive advance, smashing previous resistance zones
Formation of a golden cross boosts bulls’ appetite
Momentum indicators ease but remain deeply positive
USDCAD managed to totally erase its recent downside correction and edge higher towards a fresh six-month peak of 1.3784. However, the pair has surrendered some gains in the last couple of sessions after the short-term oscillators pointed at overbought conditions.
Should buying interest persist, the pair could re-test the recent rejection region of 1.3784. A break above that zone could open the door for the March resistance of 1.3803. Even higher, the 2023 high of 1.3860 may cap further advances.
Alternatively, if the pair corrects to the downside, a couple of previous resistance regions such as 1.3693 and 1.3666 could provide initial downside protection. Sliding below the latter, the price could then test 1.3522, which overlaps with the 50-day simple moving average (SMA). Should that barricade also fail, the spotlight could turn to the September low of 1.3377.
In brief, USDCAD has experienced a solid rally in the past few sessions, storming to a fresh six-month peak just shy of the 1.3800 handle before paring some gains. Is this the beginning of a pullback or are the bulls poised to challenge the 2023 highs?
USDCAD in an aggressive advance, smashing previous resistance zones
Formation of a golden cross boosts bulls’ appetite
Momentum indicators ease but remain deeply positive
USDCAD managed to totally erase its recent downside correction and edge higher towards a fresh six-month peak of 1.3784. However, the pair has surrendered some gains in the last couple of sessions after the short-term oscillators pointed at overbought conditions.
Should buying interest persist, the pair could re-test the recent rejection region of 1.3784. A break above that zone could open the door for the March resistance of 1.3803. Even higher, the 2023 high of 1.3860 may cap further advances.
Alternatively, if the pair corrects to the downside, a couple of previous resistance regions such as 1.3693 and 1.3666 could provide initial downside protection. Sliding below the latter, the price could then test 1.3522, which overlaps with the 50-day simple moving average (SMA). Should that barricade also fail, the spotlight could turn to the September low of 1.3377.
In brief, USDCAD has experienced a solid rally in the past few sessions, storming to a fresh six-month peak just shy of the 1.3800 handle before paring some gains. Is this the beginning of a pullback or are the bulls poised to challenge the 2023 highs?
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