Technical Analysis – USDCAD surges to new almost 5-month high
April 11, 2024 12:27 pm
USDCAD meets the upper boundary of ascending channel
MACD extends its upside momentum above trigger line
USDCAD skyrocketed to a fresh almost 5-month high of 1.3700 on Wednesday after the US CPI release. The market is challenging the upper boundary of the ascending channel and any movements even higher could endorse the bullish outlook in the short-to-medium-term timeframe.
Technically, the MACD is strengthening its momentum to the upside above the zero level, while the RSI is moving horizontally marginally beneath the 70 level.
On the upside, the price could attempt to overcome the 1.3770 resistance level, which if successfully broken, the door could open for the 1.3850 barricade. Should traders continue to buy the pair above that peak, bringing the long-term uptrend back into play, resistance could then run towards the 13-month high of 1.3900.
A reversal to the downside, however, could find immediate support at the 1.3655 hurdle, while slightly lower the 1.3610-1.3630 region could also come into view. If the latter fails to halt bearish movements, the next target could be the 20- and the 50-day simple moving averages (SMAs) at 1.3570 and 1.3530 respectively.
Turning to the medium-term trading picture, the outlook is neutral-to-bullish over the past three months and only a decisive close above the upward sloping channel could signal a resumption of the bullish trend. On the other hand, a significant decline below the 1.3175 trough could shift the outlook to bearish.
USDCAD meets the upper boundary of ascending channel
MACD extends its upside momentum above trigger line
USDCAD skyrocketed to a fresh almost 5-month high of 1.3700 on Wednesday after the US CPI release. The market is challenging the upper boundary of the ascending channel and any movements even higher could endorse the bullish outlook in the short-to-medium-term timeframe.
Technically, the MACD is strengthening its momentum to the upside above the zero level, while the RSI is moving horizontally marginally beneath the 70 level.
On the upside, the price could attempt to overcome the 1.3770 resistance level, which if successfully broken, the door could open for the 1.3850 barricade. Should traders continue to buy the pair above that peak, bringing the long-term uptrend back into play, resistance could then run towards the 13-month high of 1.3900.
A reversal to the downside, however, could find immediate support at the 1.3655 hurdle, while slightly lower the 1.3610-1.3630 region could also come into view. If the latter fails to halt bearish movements, the next target could be the 20- and the 50-day simple moving averages (SMAs) at 1.3570 and 1.3530 respectively.
Turning to the medium-term trading picture, the outlook is neutral-to-bullish over the past three months and only a decisive close above the upward sloping channel could signal a resumption of the bullish trend. On the other hand, a significant decline below the 1.3175 trough could shift the outlook to bearish.
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