USD/CAD Technical Analysis: Struggles between 100/200-day EMA
|- USD/CAD struggles for direction inside key EMAs.
- Bullish MACD keeps buyers hopeful to challenge 61.8% Fibonacci retracement.
- 1.3175/70 becomes an important support confluence.
Despite rising to the mid-October highs, USD/CAD fails to extend its run-up beyond 200-day EMA as it trades near 1.3225 during the Asian session on Monday.
While bullish signals from 12-bar Moving Average Convergence and Divergence (MACD) portrays the strength of upside momentum, sellers seek a daily closing below 100-day Exponential Moving Average (EMA) level of 1.3220 to aim for 1.3200 round-figure.
However, a rising trend line since late-October and 38.2% Fibonacci retracement of September-October declines could keep the pair’s further declines limited around 1.3175/70.
On the upside, pair’s sustained trading beyond a 200-day EMA level of 1.3230 could challenge 61.8% Fibonacci retracement level of 1.3255.
In a case where bulls keep dominating past-1.3255, 1.3300 and October month top surrounding 1.3350 will become their favorites.
USD/CAD daily chart
Trend: sideways
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.