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Technical Analysis – USD/CAD holds within SMA

USD/CAD 15Feb19 | EconAlerts

USD/CAD holds within SMA; sharp move up needed for more gains.

USD/CAD came to close to break the 40-day simple moving average (SMA), surpassing the 23.6% Fibonacci retracement level of the upward movement from 1.2060 to 1.3663, around 1.3285, earlier today. The positively aligned Tenkan-Sen line serves as a testament to the bullish short-term momentum that is in place. The technical indicators also suggest a positive bias as the RSI entered in bullish territory, while the MACD is rising above the trigger and zero lines.

Should the price stretch north, Thursday’s highs and the 40-SMA could provide immediate resistance around 1.3330 before the pair touches the 1.3370 resistance level. A significant step higher could bring the bullish sentiment back into play, sending the prices towards the 19-month high of 1.3663.

On the other side, the price could challenge the flat 20-day SMA near 1.3240 before heading lower towards the 1.3190 support barrier. If traders continue to sell the pair, the price could fall until the 1.3050 – 1.3070 area, which encapsulates the 38.2% Fibonacci mark. A drop below this key zone would reverse back to the downside, continuing the bearish correction until the 1.2910 level.

Summarising, USD/CAD has been developing in an ascending movement since September 2017 in the long-term, while over the last two months the price has been creating a negative tendency, following the pullback from the 19-month high.


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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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