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.


Latest News

US Open Note – Stocks brush with highs, dollar flickers green and yields dip


Weekly Comment – Fed to avoid taper discussion for now


Technical Analysis – US 100 index flirts with 14,000 after quick bounce


Week Ahead – Fed to steer away from taper signals


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.