You are here: Home > articles > Forex > Technical Analysis – USDCAD surpasses 20-day SMA with strong rally; 1-year high is next resistance hurdle
Technical Analysis – USDCAD surpasses 20-day SMA with strong rally; 1-year high is next resistance hurdle
July 20, 2018 7:26 amVideo
Latest News
- The euro hardly has a chance to rise April 16, 2024
- Trading Signals for GOLD (XAU/USD) for April 15-17, 2024: buy above $2,328 (200 EMA – 5/8 Murray) April 15, 2024
- Video market update for April 15, 2024 April 15, 2024
- Trading Signals for GBP/USD for April 15-17, 2024: buy above 1.2450 (21 SMA – 0/8 Murray) April 15, 2024
- The dollar has not reached its potential April 15, 2024
- Analysis of GBP/USD. April 15th. Retail sales in the USA allow the dollar to continue rising April 15, 2024
- China’s Q1 GDP growth next on the Asian calendar – Preview April 15, 2024
- Technical Analysis – Goldman Sachs stock gains on strong earnings April 15, 2024
- Trading Signals for ETH/USD (Ethereum) for April 15-17, 2024: buy above $3,125 (200 EMA – 2/8 Murray) April 15, 2024
- Analysis for EUR/USD on April 15th. Monday – a tough day for the euro April 15, 2024
- GBP/USD: trading plan for the US session on April 15th (analysis of morning deals) April 15, 2024
- EUR/USD: trading plan for the US session on April 15th (analysis of morning deals). Euro is at an impasse April 15, 2024
- GBP/USD: Will sterling hold steady against dollar? April 15, 2024
- Technical Analysis – USDJPY rallies to another fresh 34-year high April 15, 2024
- Will Netflix earnings take the share price closer to its record highs? – Stock Markets April 15, 2024
- EUR/USD. April 15th. Bulls panic and retreat from the market April 15, 2024
- GBP/USD. April 15th. The dollar gains confidence April 15, 2024
- Weekly forecast based on simplified wave analysis for GBP/USD, AUD/USD, USD/CHF, EUR/JPY, AUD/JPY, and the US Dollar Index April 15, 2024
- XM’s Heartfelt Ramadan Iftar Support April 15, 2024
- Weekly forecast based on simplified wave analysis of EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, and Gold on April 15th April 15, 2024
USDCAD recorded a stunning rally on Thursday and continued the buying interest during today’s Asian session towards a three-week high of 1.3289. This week, the pair is in positive territory, so far for the second session in a row, after the rebound near the 1.3065 support that was reached on July 9. However, the momentum indicators seem to be in confusion and the market could ease a little bit in the short-term.
The RSI indicator is currently sloping to the downside, increasing negative momentum. Despite that, the MACD oscillator created a bullish crossover with its trigger line in the positive territory, signaling for a possible upside run.
If the market manages to pick up speed, the one-year high of 1.3385 could offer nearby resistance for the bULLS. A significant close above this level would drive the pair towards the next hurdle of 1.3550 taken from the highs on June 2017.
Conversely, should prices decline, immediate support could be found at the 23.6% Fibonacci retracement level of the upleg from 1.2060 to 1.3385, around the 1.3065 barrier, which overlaps with the 40-day simple moving average (SMA). Then a leg below that level, the price could meet the 38.2% Fibonacci mark of 1.2880.
In the medium-term, the greenback seems to be in a strong bullish rally against the loonie as it has been holding within an ascending movement since September 2017.
Related Posts: