USD/CAD oscillates near a two-week high, continuing to rise from March’s low.
Buyers remain optimistic due to a bullish MACD and persistent trading beyond critical supports.
The trading filters now include a 50-day EMA and a declining trend line from late 2020.
During Friday’s Asian session, the USD/CAD is hovering around 1.2435-45. Despite positive MACD, the loonie pair recovered from the horizontal line that formed March’s bottom the previous day, but the bulls are being tested by a downward sloping trend line from late January.
The buyers may be able to overcome the 1.2450 immediate hurdle, given the quote’s good bounce from short-term horizontal support, not to mention the ability to stay over the 50-day EMA and bullish MACD.
However, the current downturn will continue until the price passes above a six-month-long resistance line, which is now around 1.2570 at press time. The USD/CAD bulls will also find it difficult to overcome April’s high near 1.2655.
Short-term selling will be directed to a 50-day EMA level of 1.2285 if the indicated horizontal support near 1.2360 is broken to the downside.
If the USD/CAD bears maintain control above 1.2285, the late-June low near 1.2250 might serve as a confirmation point for additional decline towards 1.2150 and the yearly bottom near the 1.2000 psychological magnet.
Expect more gains in the future./n
Read More
