Technical Analysis – USDCAD climbs beyond 1.30 mark, logs 17½-month high



USDCAD’s fresh advances have breached the broader 1.2927-1.2986 resistance barrier that extends back to early November of 2020. The longer-term 100- and 200-day simple moving averages (SMAs) are discreetly sponsoring the upside, while the rising 50-day SMA is endorsing the recent pickup in positive impetus.

The Ichimoku lines are indicating a pause in upward drive, while the short-term oscillators are advertising conflicting messages in directional momentum. The MACD is implying that bullish forces are strengthening, meanwhile the dipping RSI and the stochastic oscillator are both hinting that buying interest has softened as the pair overstepped the 1.2927-1.2986 key resistance border.

In order to boost gains, the current dwindling positive forces would need to create a foothold off the 1.2927-1.2986 zone, which may result in buyers encountering initial resistance around the near one-and-a-half-year high of 1.3076 and the 1.3112 barrier. Another jump higher - violating the 1.3172 mid-November 2020 high - could encourage buyers to target the high around the 1.3300 handle before they challenge the 1.3389-1.3504 resistance section, which started to take shape around mid-June 2020.

Alternatively, if the ebbing in positive drive escalates and the price retreats, the 1.2927-1.2986 zone may provide some downside friction ahead of the fresh low and the 1.2900 hurdle, where the red Tenkan-sen line also happens to reside. If selling interest intensifies further, the bears could then dive for the blue Kijun-sen line at 1.2766 prior to taking a crack at a fortified support region from the 1.2718 inside swing low until the Ichimoku cloud’s upper band at 1.2649, coupled with the 200-day SMA.

Summarizing, USDCAD has overcome the critical 1.2927-1.2986 ceiling that has curbed advances since early November 2020, which is a positive indication for additional advances to unfold. However, if the price fails to remain north of this border, the pair could sink back into a more neutral price structure.

Latest News

Technical Analysis – GBPCAD bounces within critical support band, bearish risks linger


Technical Analysis – GBPJPY tackles 50.0% Fibonacci after bouncing off 100-MA



Technical Analysis – EURUSD buyers target 1.06 handle


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.