Technical Analysis – USDCAD heads higher but struggles below 38.2% Fibonacci mark
|USDCAD climbed sharply above the 1.2685 level during Thursday’s trading session and posted a new 2-month high near 1.2755. However, the price ended the day slightly above its opening level and struggled below the 38.2% Fibonacci retracement level of the down-leg with the high of 1.3800 and the low of 1.2060. The technical indicators now support that the short-term bias is bullish.
Looking at the daily timeframe, the 20-simple moving average posted a bullish crossover with the 40-SMA, suggesting a strong buying interest. Moreover, the price rebounded on the 20-SMA and recorded five green days in a row.
From the technical point of view, the MACD oscillator is rising in the positive territory and jumped above its trigger line, while the Relative Strength Index (RSI) is endorsing the scenario for upside movement as it is approaching the overbought zone.
Should the market continue the upside tendency, the 38.2% Fibonacci at 1.2723 could provide nearby resistance before the 1.2910 resistance level come into view.
To the downside, immediate support could come from the 20-SMA at 1.2522 ahead of the 23.6% Fibonacci of 1.2470. Further below, the focus would shift to the 1.2250 key level.
Regarding the medium-term picture, it is worth mentioning that the price successfully surpassed the 40-week SMA, signaling further gains.
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