USD/CAD Technical Analysis: 21-DMA caps 61.8% Fibonacci breakout
|- USD/CAD extends Friday’s recovery while confronting 21-DMA.
- 200-DMA, November high can please buyers beyond immediate resistance.
- 1.3160/55 could return during the declines below 61.8% Fibonacci retracement.
USD/CAD rises to an intra-day high of 1.3262 by the press time of early Monday. The pair holds on to recovery gains while confronting 21-Day Simple Moving Average (DMA).
Although sustained trading beyond the 21-DMA level of 1.3260 opens the gate for a 200-DMA level of 1.3280, the Bulls can’t be said to have full control as November month high near 1.3330 keeps them challenged.
Should there be a clear run-up above 1.3330, tops marked in October and September near 1.3350 and 1.3385 will return to the charts.
Alternatively, 61.8% Fibonacci retracement level of September-October fall around 1.3250 acts as immediate support, a break of which could drag prices to 50% Fibonacci retracement figure of 1.3213.
It’s worth mentioning that 1.3160/55 area including lows marked on November 19 and December 05 can restrict pair’s declines below 1.3213.
USD/CAD daily chart
Trend: Bullish
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.