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Technical Analysis – USD/CAD retains a bullish outlook

USD/CAD 23/11/2018 | EconAlerts

USD/CAD retains bullish mode in the short- and long-term.

USD/CAD has been trading in an ascending movement over the last one-and-a-half months, but in case of a penetration of the trend line, it could move lower in the near term. Also, when looking at the bigger picture the pair has a clear upside trend after its rebound on the 1.2060 support level.

Momentum indicators in the daily timeframe, are too weak to provide a sustained move higher as the RSI is flattening above the neutral threshold of 50 and the MACD dropped marginally below the trigger line. The 20- and 40-simple moving averages (SMA) could act as strong support levels for traders, as the price holds above them.

In the event of more negative pressures and a slip below the 20-day simple moving average (SMA), the pair could challenge the 1.3125 support, taken from the latest lows. A significant slip below this region could lead to a test the 40-SMA level near 1.3090, before heading towards the 23.6% Fibonacci retracement level of the up-leg from 1.2060 to 1.3385, around 1.3070.

However, a rebound could drive the market until the 1.3315 resistance and a jump above this region could take on the one-year high of 1.3385.

Turning to the long-term view, the market seems to be in a bullish mode given that USD/CAD still trades above the 20- and 40-day SMA and well above the long-term ascending trend line, which has been holding since September 2014.

To sum up, the pair is expected to post more gains in the short- and long-term outlooks.

USD/CAD 23/11/2018 | EconAlerts



 

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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

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