Technical Analysis – USDCAD retraces higher towards 6-month high
October 20, 2023 7:26 am
USDCAD attempts to completely erase its latest pullback
On track to test the 6-month peak of 1.3784
Momentum indicators are heavily tilted to the bullish side
USDCAD had been in a steady advance since late September, posting a fresh six-month high of 1.3784 on October 5. Although the pair corrected to the downside, it quickly found its feet and recouped some losses, while both the RSI and MACD are endorsing this rebound as they are deep in their positive zones.
Should buying interest persist, the pair could re-test the recent rejection region of 1.3784, which is a six-month high. A break above that zone could open the door for the March resistance of 1.3803. Even higher, the 2023 peak of 1.3860 may curb 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 the October low of 1.3568. Should that barricade also fail, the spotlight could turn to the September bottom of 1.3377.
In brief, USDCAD appears ready to revisit its recent six-month high as near-term risks remain skewed to the upside.
USDCAD attempts to completely erase its latest pullback
On track to test the 6-month peak of 1.3784
Momentum indicators are heavily tilted to the bullish side
USDCAD had been in a steady advance since late September, posting a fresh six-month high of 1.3784 on October 5. Although the pair corrected to the downside, it quickly found its feet and recouped some losses, while both the RSI and MACD are endorsing this rebound as they are deep in their positive zones.
Should buying interest persist, the pair could re-test the recent rejection region of 1.3784, which is a six-month high. A break above that zone could open the door for the March resistance of 1.3803. Even higher, the 2023 peak of 1.3860 may curb 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 the October low of 1.3568. Should that barricade also fail, the spotlight could turn to the September bottom of 1.3377.
In brief, USDCAD appears ready to revisit its recent six-month high as near-term risks remain skewed to the upside.
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