-
USDCAD pauses aggressive bull run near five-month high.
-
Faces resistance around 1.3800, but remains supported above 1.3690.
USDCAD attempted to re-enter the 1.3800 territory earlier today after its pullback from a five-month high of 1.3844 on Wednesday. But upside forces faded soon, forcing the price to pull back to Thursday’s closing price of 1.3765.
The RSI and the stochastic oscillator have exited the overbought territory, justifying the latest negative turn in the price. That said, the RSI is still comfortably elevated above its 50 neutral mark and the MACD is well above its red signal line, providing a ray of hope that the bulls could still show up.
Should the bears break below the 78.6% Fibonacci retracement of the November-December downleg at 1.3743, there is a possibility of another decline to retest the upper band of the broken bullish channel at 1.3690. An extension lower could stabilize somewhere between the 20-day simple moving average (SMA) and the 1.3600 round level. If not, the sell-off could continue towards the 50-day SMA at 1.3565.
In the positive scenario, where the pair closes back above 1.3800, it may face another tough battle within the 2023 peak area of 1.3860-1.3898. Once the border is successfully penetrated, the next target will be the 2022 top of 1.3976, while higher, the bulls might encounter resistance somewhere between the 1.4040 barrier seen in May 2020 and the psychological level of 1.4100.
To summarize, USDCAD has switched to a neutral mode and is awaiting a decisive move above 1.3800 or below 1.3690 to determine its next direction.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
AUD/USD eases toward 0.6500 after mixed Australian trade data
AUD/USD is seeing some fresh selling interest in the Asian session on Thursday, following the release of mixed Australian trade data. The pair has stalled its recovery mode, as the US Dollar attempts a bounce after the Fed-led sell-off.
USD/JPY holds rebound near 156.00 after probable Japan's intervention-led crash
USD/JPY consolidates the rebound near 156.00, having lost nearly 450 pips in some minutes after the Japanese Yen rallied hard on another suspected Japan FX market intervention in the late American session on Wednesday.
Gold price struggles for a firm intraday direction, hover above $2,300
Gold price fails to lure buyers amid a fresh leg up in the US bond yields, modest USD uptick. A positive risk tone also contributes to capping the upside for the safe-haven precious metal. Traders, however, might prefer to wait for the US NFP report before placing aggressive bets.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Fed meeting: The hawkish pivot that never was, and the massive surge in the Yen
The Fed’s latest meeting is over, and the tone was more dovish than expected, but that is because the rate hike hype in the US was over-egged, and rate cut hopes had been pared back too far in recent weeks.