You are here: Home > articles > Forex > Technical Analysis – USDCAD rebounds strongly, crucial trendline in sight
Technical Analysis – USDCAD rebounds strongly, crucial trendline in sight
August 4, 2023 8:27 amVideo
Latest News
- Key events on April 17: fundamental analysis for beginners April 17, 2024
- Trading plan for GBP/USD on April 17. Simple tips for beginners April 17, 2024
- Trading plan for EUR/USD on April 17. Simple tips for beginners April 17, 2024
- Technical Analysis of Intraday Price Movement of USD/JPY Main Currency Pairs, Wednesday April 17, 2024. April 17, 2024
- Technical Analysis of Intraday Price Movement of Crude Oil Commodity Asset, Wednesday April 17, 2024. April 17, 2024
- Forecast for EUR/USD on April 17, 2024 April 17, 2024
- Forecast for GBP/USD on April 17, 2024 April 17, 2024
- Forecast for USD/JPY on April 17, 2024 April 17, 2024
- Outlook for EUR/USD on April 17. A boring Monday seamlessly transitioned into a boring Tuesday April 17, 2024
- Will the euro manage to save itself? April 17, 2024
- Analysis for GBP/USD on April 16th. The pound should not count on support from Powell April 16, 2024
- Analysis for EUR/USD on April 16th. The southern trend has been put on pause for correction April 16, 2024
- USD/JPY: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- GBP/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- Trading Signals for GBP/USD for April 16-18, 2024: buy above 1.2405 or 1.2450 (21 SMA – 0/8 Murray) April 16, 2024
- EUR/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- AUD/USD: Australian dollar remains under pressure April 16, 2024
- GBP/USD: trading plan for the US session on April 16th (analysis of morning deals). The pound was quickly bought back around April 16, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 16-18, 2024: buy above $62,500 (4/8 Murray – 21 SMA) April 16, 2024
- Technical Analysis – USDCAD blossoms ahead of central bank speeches April 16, 2024
USDCAD had been in a steady downtrend since early March, generating a clear structure of lower lows. However, the pair found its feet at the 10-month bottom of 1.3091 and attempted to recoup some losses, with the price testing the ascending trendline that connects the pair’s higher lows from November 2022 until early May.
The momentum indicators are endorsing this latest rebound. Specifically, the MACD is strengthening above zero and its red signal line at its highest level since June 1, while the RSI jumped above its 50-neutral threshold.
Should the price extend its advance above the upward sloping trendline, initial resistance could be found at the July peak of 1.3385. Piercing through that wall, the pair could face 1.3550 before the April peak of 1.3666 appears on the radar. If the latter fails, the spotlight could turn to the 1.3700 psychological mark, which held strong in December 2022.
Alternatively, should the recent rebound fizzle out, the price may retrace lower to test the April bottom of 1.3330 before a series of lows that constitute the ascending trendline come under examination. Thus, a drop below that region could trigger a decline towards the February low of 1.3262 ahead of the August 2022 bottom of 1.3225. Even lower, the 1.3115 hurdle could provide downside protection.
In brief, USDCAD has been staging a mild recovery after its steep decline came to a halt at a fresh 2023 low. For that rebound to continue, the price needs to decisively cross above the ascending trendline.
Related Posts: