USD/CAD edged higher today, breaking above the key resistance (now turned into support) barrier of 1.3205, marked by Tuesday’s peak, as well as by the high of December 13th. Overall, the pair continues to print higher peaks and higher lows above an upside support line taken from the low of January 7th, while since January 22nd, it’s been trading above all three of our moving averages. In our view, all these signs point to a positive near-term outlook.
The rate is currently testing the 1.3223 zone, defined as a resistance by the inside swing lows of December 9th and 10th. If the bulls are willing to continue to parade and overcome that hurdle, then we may see them aiming for the 1.3248 zone, marked by the high of December 10th, or the 1.3270 obstacle, near the peak of December 6th. If they are not willing to stop there either, a move higher may set the stage for larger extensions, perhaps towards the 1.3308 area.
Taking a look at our short-term oscillators, we see that the RSI turned up and just poked its nose above its 70 line, while the MACD, already positive, has turned up again and crossed above its trigger line. Both indicators suggest accelerating upside speed and enhance the case for this exchange rate to continue sailing north for a while more.
Now, in case the bulls decide to take a small break and the rate falls below 1.3187, this may signal the initiation of a decent correction to the downside. Initially the rate may target the 1.3154 level, which is Tuesday’s low, where another break may allow a test near the aforementioned upside line. Nonetheless, the outlook would still be cautiously positive. In order to start examining whether the bears have gained the upper hand, we prefer to wait for a dip below 1.3104, marked by the inside swing high of January 9th.
JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.