Technical Analysis – USDCAD bulls’ patience could be rewarded if they break 1.3575
May 10, 2023 1:27 pm
USDCAD is edging lower today, hovering below the 1.3375 level. This pair has been on a downwards path since the March 10, 2023 local peak of 1.3861, recording a series of lower highs and bringing joy to USD bears. However, the 1.3309-1.3375 area seems to trouble them more than anticipated.
The stochastic oscillator though appears to be supportive of their intentions as it is moving lower and towards its oversold area in an almost vertical fashion. Should this trend continue,the bears’ next target would come at the July 14, 2022 and the November 15, 2022 highs at 1.3225. Just a tad lower, the 50% Fibonacci retracement of the April 5, 2022 – October 13, 2022 uptrend at 1.3190 could prove stronger to crack.
On the other hand, there is a bullish double-bottom pattern developing in USDCAD, which should allow for some degree of optimism for USD bulls. Confirmation of this pattern would only come if the USDCAD pair manages to break above its neckline at 1.3667 with a potential upside target being in the 1.3900 region.
Should the bulls regain market control and overcome the current resistance set at the 1.3375 level, they will probably set their eyes on the busy 1.3459-1.3575 range. This is defined by the October 4, 2022 low and the 50-, 100- and 200-day simple moving averages (SMAs) respectively. Even higher, the 23.6% Fibonacci retracement of the April 5 – October 13 uptrend at 1.3605 awaits them along with the March 10, 2023 downward sloping trendline.
To conclude, USDCAD is ready to test the March-April 2023 lows on the back of the recent stochastic move, as the USD bulls are playing the long game.
USDCAD is edging lower today, hovering below the 1.3375 level. This pair has been on a downwards path since the March 10, 2023 local peak of 1.3861, recording a series of lower highs and bringing joy to USD bears. However, the 1.3309-1.3375 area seems to trouble them more than anticipated.
The stochastic oscillator though appears to be supportive of their intentions as it is moving lower and towards its oversold area in an almost vertical fashion. Should this trend continue, the bears’ next target would come at the July 14, 2022 and the November 15, 2022 highs at 1.3225. Just a tad lower, the 50% Fibonacci retracement of the April 5, 2022 – October 13, 2022 uptrend at 1.3190 could prove stronger to crack.
On the other hand, there is a bullish double-bottom pattern developing in USDCAD, which should allow for some degree of optimism for USD bulls. Confirmation of this pattern would only come if the USDCAD pair manages to break above its neckline at 1.3667 with a potential upside target being in the 1.3900 region.
Should the bulls regain market control and overcome the current resistance set at the 1.3375 level, they will probably set their eyes on the busy 1.3459-1.3575 range. This is defined by the October 4, 2022 low and the 50-, 100- and 200-day simple moving averages (SMAs) respectively. Even higher, the 23.6% Fibonacci retracement of the April 5 – October 13 uptrend at 1.3605 awaits them along with the March 10, 2023 downward sloping trendline.
To conclude, USDCAD is ready to test the March-April 2023 lows on the back of the recent stochastic move, as the USD bulls are playing the long game.
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