Technical Analysis – USDCAD rises after posting 6-year low

USDCAD is gaining ground over the last couple of days, following the rebound off the six-year low of 1.2240. The price found an obstacle at the red Tenkan-sen line, which is acting as strong resistance. The MACD oscillator is trying to surpass above its trigger line in the negative area, while the RSI jumped above the oversold zone.

The 20-day simple moving average (SMA) around the 1.2300 handle is the first hurdle to halt upside movements ahead of the 1.2365-1.2456 restrictive area, which encapsulates the 40-day SMA. Above that, the 1.2645 and the 1.2750 resistances could attract attention before the 200-day SMA at 1.2830.

On the other side, a pause could be faced near the six-year low of 1.2240 before tumbling to the May 2015 low at 1.1920. Moreover, the inside swing high at 1.1720, registered in July 2009 could be the next significant support for traders.

Overall, USDCAD has been in an aggressive bearish tendency since March 2020, posting no notable bullish corrections.

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