USD/CAD ticks higher within ascending channel [Video]

USDCAD bounces off 200-day SMA.
MACD and RSI are still weak.

Melina Deltas, CFTe XM

USDCAD is moving slightly higher following the rebound off the simple moving averages (SMAs), remaining within a short-term ascending channel.

Technically, the MACD oscillator is holding beneath its trigger line and near the zero level, weakening its momentum, while the RSI is pointing marginally up above the neutral threshold of 50.

If the market extends its advance higher, then the restrictive region within 1.3610-1.3655 could halt bullish actions. However, a successful climb higher could endorse the bullish outlook, meeting the 1.3770 resistance, taken from the peak on November 16.

On the other hand, if the bears take control and slip beneath the 200-day SMA the pair could pause its downward move at 1.3455 ahead of 1.3410. A decline below the five-month low of 1.3175 could also switch the bias to a bearish one.

To conclude, USDCAD has been in a steady upward movement since January 9 but needs more of a boost to have a clear bullish trend.

Author

Melina Deltas, CFTe

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.

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