USD/CAD fails to improve bullish actions; neutral in the near term.
USD/CAD has been remaining steady near the 23.6% Fibonacci retracement level of the up leg from 1.2250 to 1.3663 around 1.3230 over the last month, failing to confirm once again its long-term upside tendency. The price is hovering within the Ichimoku cloud, while the red Tenkan-Sen and the blue Kijun-Sen lines are flattening. Furthermore, the RSI holds near the threshold of 50 and the MACD is standing below its trigger line and near its zero
In case of a jump above the psychological level of 1.3400, this may lead the price towards the two-month high of 1.3465 and an aggressive jump above this level could send the market until the 19-month high of 1.3663.
Alternatively, a failure to overcome 1.3400, would send the price back down to the 23.6% Fibonacci of 1.3230 before touching 1.3295. Lower, the 1.3250 and the ascending trend line could halt downside movements, but if not, then more losses could follow, probably towards the 38.2% Fibonacci of 1.3120, shifting the bullish long-term structure to neutral.
To sum up, in the long-term timeframe, the market has been developing in an upside movement since February 2018, completing higher highs and higher lows. However, in the short-term, only a daily close above the two-month high would resume bullish actions.
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