USDCAD short-term bearish below 200-day MA; neutral in medium-term
|USDCAD has been in a downtrend since falling from the May 5 high of 1.3792. There is risk to the downside since the momentum indicators are bearish. RSI is below 50 and MACD is below zero and trending down.
Other bearish signals were given when the tenkan-sen crossed below the kijun-sen on May 24. Trend indicators are also showing a bearish picture, as the market is below the Ichimoku cloud and below the 200-day moving average.
Major resistance is now being provided by this 200-day MA at 1.3342. A sustained break above this would start to weaken the downside bias and prices would target the base of the cloud at 1.3507. From here prices would move into the cloud. Rising above the cloud top at 1.3612 would negate the bearish bias.
Immediate support is at the June 14 low of 1.3163 and a fall below this level would target the January 31 low of 1.2968.
In the bigger picture, staying within the range of 1.3000 and 1.3600 would keep a neutral bias for the medium-term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.