Technical Analysis – USDCAD pulls back but diagonal line still stands
USDCAD attempts to test the uptrend line
Momentum indicators remain cautiously tilted to the downside
USDCAD had an aggressive selling interest after the pullback from the 1.3740 resistance level, meeting the 20- and the 50-day simple moving averages (SMAs) again. The pair is still holding above the medium-term rising trend line, but the technical oscillators are indicating more decreases. The RSI is flattening near the neutral level of 50, while the stochastic is heading south, posting a bearish crossover within its %K and %D lines.
A successful rebound off the uptrend line could take the pair back near the 1.3740 barricade ahead of the next highs of 1.3785 and 1.3845. If traders continue to buy the pair, then the market could switch to strongly bullish again, hitting the 13-month peak of 1.3900.
Otherwise, a significant decline below the diagonal line could open the way for a test of the 1.3590 strong obstacle and the 200-day SMA at 1.3575. More decreases may be a sign for a bearish correction movement until the 1.3455 support level.
All in all, despite the latest fall in USDCAD, there are some obstacles to consider before a real bearish trend reversal takes place.Related Assets
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.
