Technical Analysis – USDCAD bulls try to put a temporary stop to the recent sell-off
April 17, 2023 11:27 am
USDCAD is higher today as USD bulls are trying to put a temporary stop to the most recent bearish move. Since the March 10, 2023 high of 1.3861, a series of lower highs and lower lows have been recorded, confirming that the short-term trend remains bearish and infusing further confidence in USD bears. Especially, the recent break of the busy 1.3500-1.3571 area was a key win for them, as they rightfully look for even lower prints.
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 side, USD bulls have not given up yet as they try to gather enough support from the momentum indicators to stage a strong comeback. However, the picture is not really favourable for them. The Average Directional Movement Index (ADX) indicates a trending market, and the RSI is still supporting further bearish moves. Even the stochastic oscillator is not helpful for USD bulls as it is trading at its oversold territory. However, a possible move above its moving average could be the signal that the bulls might be waiting for.
Should they manage to overcome the current resistance set at the 1.3375-1.3407 area, they will probably set their eyes on the busy 1.3500-1.3571 range. This is defined by the October 4, 2022 low and the 50- and 100-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.
To conclude, USDCAD bulls are trying to reduce their recent losses. They would enjoy pushing the pair above the 1.3407 area, but the overall technical picture is really not supportive of their intentions.
USDCAD is higher today as USD bulls are trying to put a temporary stop to the most recent bearish move. Since the March 10, 2023 high of 1.3861, a series of lower highs and lower lows have been recorded, confirming that the short-term trend remains bearish and infusing further confidence in USD bears. Especially, the recent break of the busy 1.3500-1.3571 area was a key win for them, as they rightfully look for even lower prints.
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 side, USD bulls have not given up yet as they try to gather enough support from the momentum indicators to stage a strong comeback. However, the picture is not really favourable for them. The Average Directional Movement Index (ADX) indicates a trending market, and the RSI is still supporting further bearish moves. Even the stochastic oscillator is not helpful for USD bulls as it is trading at its oversold territory. However, a possible move above its moving average could be the signal that the bulls might be waiting for.
Should they manage to overcome the current resistance set at the 1.3375-1.3407 area, they will probably set their eyes on the busy 1.3500-1.3571 range. This is defined by the October 4, 2022 low and the 50- and 100-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.
To conclude, USDCAD bulls are trying to reduce their recent losses. They would enjoy pushing the pair above the 1.3407 area, but the overall technical picture is really not supportive of their intentions.
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