Technical Analysis – USDCAD adds 2% after bounce off 1.3300
April 25, 2023 1:28 pm
USDCAD added more than 2% over the last eight days, surpassing the short-term simple moving averages (SMAs) to the upside. The pair has been developing within a descending triangle over the last six months with the technical oscillators confirming the latest rebound off the 1.3300 psychological mark.
Any move higher could take the pair until the immediate 1.3640 resistance. Should the price decisively close above the roof of the descending triangle, seen at 1.3760, bulls could extend the uptrend towards 1.3800, with the region around that level acting as resistance back in March. Further advances above this level, could then target the area around 1.3860.
On the other hand, a decline could meet the 20-day SMA at 1.3470 ahead of the 200-day SMA at 1.3420. Slightly lower, the price could retest the lower line of the triangle approximately at 1.3260, before more bearish movement shifts the focus to the 1.3225 trough.
In a nutshell, USDCAD is neutral-to-bearish in the long-term timeframe but if the current upside pressure continues above the 1.3800 handle, it may shift the bias to bullish.
USDCAD added more than 2% over the last eight days, surpassing the short-term simple moving averages (SMAs) to the upside. The pair has been developing within a descending triangle over the last six months with the technical oscillators confirming the latest rebound off the 1.3300 psychological mark.
Any move higher could take the pair until the immediate 1.3640 resistance. Should the price decisively close above the roof of the descending triangle, seen at 1.3760, bulls could extend the uptrend towards 1.3800, with the region around that level acting as resistance back in March. Further advances above this level, could then target the area around 1.3860.
On the other hand, a decline could meet the 20-day SMA at 1.3470 ahead of the 200-day SMA at 1.3420. Slightly lower, the price could retest the lower line of the triangle approximately at 1.3260, before more bearish movement shifts the focus to the 1.3225 trough.
In a nutshell, USDCAD is neutral-to-bearish in the long-term timeframe but if the current upside pressure continues above the 1.3800 handle, it may shift the bias to bullish.
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