Technical Analysis – USDCAD unlocks fresh 26-month high
USDCAD skyrocketed to a higher high on yesterday’s session at 1.3543, which is a new 26-month peak. The pair looks to be creating a floor above the 1.3400 barrier while the RSI and the MACD oscillators are holding in overbought levels, suggesting that the next move may be to the downside.
Traders, however, would be more eager to buy if the price manages to surpass the nearby top at 1.3543. If this is successfully breached, then the rally may next rest somewhere near the 1.3715 resistance, taken from the peak in June 2020, while a closure above that level may push the market until the inside swing low of 1.3850, registered in April 2020.
On the flip side, the selling pressure could accelerate if the market deteriorates below the 1.3420 former strong support area. Such a move could next bring the 1.3225 key barrier under the spotlight, which if violated could trigger sharper losses probably towards the 20- and 50-day simple moving averages (SMAs) at 1.3190 and 1.3010 respectively.Summarizing, USDCAD is expected to show improvement if the price overcomes the latest high. A sharp selling interest beneath the 200-day SMA and the long-term uptrend line is required to switch the outlook to negative.
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.