Technical Analysis – USDCAD eases slightly after bullish rally
May 24, 2024 11:28 am
USDCAD surpasses 20- and 50-day SMAs
Stochastics and RSI suggest neutral move
USDCAD was creating an impressive bullish rally over the previous four days, following the bounce off the 1.3590 support level, surpassing the 20- and the 50-day simple moving averages (SMAs).
Technically, the RSI indicator is moving horizontally above the neutral threshold of 50 and the stochastic oscillator is turning down in the overbought region, mirroring the latest weakness in prices.
If the buying interest persists, immediate resistance could come from the 1.3785 barricade ahead of the previous top of 1.3845. Any increases above the latter could endorse the bullish scenario, hitting the 13-month high of 1.3900.
On the other hand, a dive beneath the 20- and the 50-day SMAs could take the price back near the uptrend line and the significant 1.3590 support. Moreover, the 200-day SMA near 1.3570 is acting as strong support so, further downside movements could switch the outlook to neutral, visiting the 1.3455 hurdle.
All in all, USDCAD is looking bullish in the very short-term as well as in the medium-term view, but a drop below the 200-day SMA could change the picture for the pair.
USDCAD surpasses 20- and 50-day SMAs
Stochastics and RSI suggest neutral move
USDCAD was creating an impressive bullish rally over the previous four days, following the bounce off the 1.3590 support level, surpassing the 20- and the 50-day simple moving averages (SMAs).
Technically, the RSI indicator is moving horizontally above the neutral threshold of 50 and the stochastic oscillator is turning down in the overbought region, mirroring the latest weakness in prices.
If the buying interest persists, immediate resistance could come from the 1.3785 barricade ahead of the previous top of 1.3845. Any increases above the latter could endorse the bullish scenario, hitting the 13-month high of 1.3900.
On the other hand, a dive beneath the 20- and the 50-day SMAs could take the price back near the uptrend line and the significant 1.3590 support. Moreover, the 200-day SMA near 1.3570 is acting as strong support so, further downside movements could switch the outlook to neutral, visiting the 1.3455 hurdle.
All in all, USDCAD is looking bullish in the very short-term as well as in the medium-term view, but a drop below the 200-day SMA could change the picture for the pair.
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