Technical Analysis – USDCAD consolidates after rebound pauses
July 17, 2023 3:28 pm
USDCAD had begun another round of weakness since July 7, tumbling to a fresh 10-month low of 1.3091 last Friday. However, the pair bounced off strongly from its recent lows and has now entered a consolidation phase just shy of its 50-period simple moving average (SMA).
The momentum indicators currently suggest a cautiously bullish near-term bias. Specifically, the MACD is approaching zero after crossing above its red signal line, while the RSI is holding marginally above its 50-neutral mark.
Should the price reverse back lower, initial support could be met at the 1.3200 region. Sliding beneath that floor, the pair could descend towards 1.3176 before 1.3136 comes under examination. Further declines might then cease at the June low of 1.3116.
Alternatively, bullish actions could propel the price above the recent rejection region 1.3231. A break above that zone could trigger an advance towards 1.3303. If that barricade fails, the spotlight could turn to the July peak of 1.3386, which also provided resistance in early June.
Overall, USDCAD remains directionless after its latest rebound came to a halt. Hence, a break above or below the recent range could be followed by a significant move in the same direction.
USDCAD had begun another round of weakness since July 7, tumbling to a fresh 10-month low of 1.3091 last Friday. However, the pair bounced off strongly from its recent lows and has now entered a consolidation phase just shy of its 50-period simple moving average (SMA).
The momentum indicators currently suggest a cautiously bullish near-term bias. Specifically, the MACD is approaching zero after crossing above its red signal line, while the RSI is holding marginally above its 50-neutral mark.
Should the price reverse back lower, initial support could be met at the 1.3200 region. Sliding beneath that floor, the pair could descend towards 1.3176 before 1.3136 comes under examination. Further declines might then cease at the June low of 1.3116.
Alternatively, bullish actions could propel the price above the recent rejection region 1.3231. A break above that zone could trigger an advance towards 1.3303. If that barricade fails, the spotlight could turn to the July peak of 1.3386, which also provided resistance in early June.
Overall, USDCAD remains directionless after its latest rebound came to a halt. Hence, a break above or below the recent range could be followed by a significant move in the same direction.
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