USDCAD Price Analysis: Refreshes weekly high above 1.3360 as investors turn cautious
|- A rebound in the risk-off market mood has strengthened the Greenback bulls.
- A usual test of the breakout region of the accumulation phase will offer a bargain buy to the market participants.
- Advancing 20-EMA adds to the upside filters.
The USDCAD pair has shifted its auction profile above the critical hurdle of 1.3350 in the early European session. The asset has witnessed a decent buying interest as investors have turned cautious amid escalating geopolitical tensions between North Korea and the US. The major has refreshed it's weekly high above 1.3360 led by a steep fall in oil prices.
The US dollar index (DXY) has witnessed marginal selling pressure while struggling to cross the critical hurdle of 106.60. While the S&P500 futures have shown some recovery after easing entire gains recorded in early Asia.
On an hourly scale, the asset has delivered a breakout of the accumulation phase that signals the transfer of inventory from retail participants to institutional investors. A usual test of the breakout region around 1.3336 would be an optimal opportunity for investors to initiate longs.
The 20-period Exponential Moving Average (EMA) at 1.3325 is advancing, which adds to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that upside momentum has been activated.
Should the asset corrects marginally to near the breakout region around 1.3336, investors will consider this a bargain buy and will initiate fresh longs. This will drive the asset towards November 8 low at 1.3387, followed by November 10 high at 1.3571.
On the contrary, the Loonie bulls could regain control if the asset drops below the round-level support of 1.3300, which will drag the asset towards Wednesday’s low at 1.3246 and September 1 high around 1.3200.
USDCAD hourly chart
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