Wednesday, April 1, 2020
Home > Posts > Technical Analysis – USD/CAD the bullish outlook remains

Technical Analysis – USD/CAD the bullish outlook remains

USD/CAD 12OCT2018 | EconAlerts

USD/CAD rally eases below short-term downtrend line.

USD/CAD has eased back down again after finding resistance at the 23.6% Fibonacci retracement level of the up-leg from 1.2060 to 1.3385, around 1.3072. The price is paring some of the previous days’ strong gains and remains in a short-term bearish bias, despite that it stands above the 20- and 40-simple moving averages (SMA) in the daily timeframe.

However, the technical indicators are suggesting for a possible upside movement as the MACD oscillator is trying to surpass the zero line and moves above the trigger line, while the stochastics holds in the overbought zone with weak momentum.

In case of an upward attempt above the 23.6% Fibonacci and the downtrend line, USD/CAD would likely meet resistance at the 1.3230 level. A break above this line would send prices until the 1.3290 resistance level, achieved on July 19. Further gains would push the market until the one-year high of 1.3385.

On the other side, a drop below the SMA, immediate support is being provided by the 38.2% Fibonacci mark of 1.2880, which is acting as a major obstacle for the bears. If prices dip below of this area, the next support would likely come from the latest bottom of 1.2780 and then could hit the 50.0% Fibonacci around the 1.2730 level, taken from the low on May 11. A drop below the 50% Fibonacci level would signal the start of a deeper bearish phase, challenging the longer-term rising trend line again.

Regarding the bigger picture, the bullish outlook remains intact as USD/CAD stands above the ascending trend line, which has been holding since September 2017. The short-term negative movement would be erased if the price surpasses the downtrend line.

USD/CAD 12OCT2018 | EconAlerts

 



 

TRADE THE MARKETS     TRY A DEMO ACCOUNT     US TRADERS

All trading involves risk. It is possible to lose all your capital

 


Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

Leave a Reply

Your email address will not be published. Required fields are marked *