Technical Analysis – USDCAD moves sideways in a tight range
In trend indicators the 20-and 50-day simple moving average (SMAs) posted a bullish crossover, suggesting more upside moves. However, the MACD oscillator is moving sideways above the zero level, while the RSI is pointing slightly down in the positive region, indicating a weak bias.
If the market extends its gains above the 1.3700 mark, then the next barrier to have in mind is the 1.3850 resistance and the 29-month high of 1.3980, registered on October 13. Any moves above this line could endorse the long-term bullish outlook sending the market to the 1.4170 barrier, taken from the high in May 2020.
On the other hand, a drop below the short-term SMAs could open the way towards the 1.3510 support before extending the losses towards the 1.3225-1.3310 support area. Below that, the 200-day SMA at 1.3100 may halt the bearish movements.
Summarizing, USDCAD is neutral in the short-term timeframe, but in the broader outlook it is still bullish. A move beneath the 200-day SMA may change the outlook to bearish.
Latest News
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.
