USDCAD bulls relaxed near the 200-day simple moving average (SMA) on Thursday, letting the price slip back into the 1.3200 handle.

According to the RSI and the MACD, traders could behave neutral in the short-term as the former hovers around the 50 mark and the latter is showing little strength around its red signal line.

Although the pair managed to inch above the 50% Fibonacci of the downleg from 1.3563 to 1.3015 this week, it could not close above it, making the area around 1.3290 a key resistance level to watch if the bullish pressure revives. The 1.3340 level, which is slightly below the 61.8% Fibonacci was a bigger hurdle in the previous month and if successfully breached, with the price rallying above the latest 1.3381 peak, the door would open for the 1.3450 handle, where the 78.6% Fibonacci is placed.

On the downside, the 1.3240-1.3200 region which encapsulates the 38.2% Fibonacci may first attract attention if the bears retake control. Next, some consolidation could emerge between 1.3175 and 1.3130, while deeper the 1.3067 barrier could also capture negative corrections.

Looking at the medium-term picture, the pair is in a sideways move within the 1.3381 and 1.3015 boundaries and any violation of this range is expected to provide the direction bias.

In brief, USDCAD is sending neutral signals both in the short- and the medium-term time-frame.

usdcad

Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD defends gains above 1.1300 amid broad dollar recovery

EUR/USD defends gains above 1.1300 amid a broad-based US dollar recovery. The shared currency remains at the mercy of the broader market sentiment as the data docket is light on Monday. COVID-19 stats in focus. 

EUR/USD News

GBP/USD batting to extend gains beyond 1.2600

Risk-on mood limits the dollar’s bullish potential. GBP/USD bounces from daily lows, but Brexit concerns weigh on Sterling. BOE Governor Bailey's speech awaited.

GBP/USD News

Gold sits near daily tops, just below $1810 level

A combination of supporting factors assisted gold to regain positive traction on Monday. Sustained USD selling remained supportive amid concerns about rising COVID-19 cases. The prevalent risk-on mood might turn out to be the only factor capping any strong gains.

Gold News

Dominance war to push Ethereum to $270

The Altcoin segment is still in full swing while the crypto board leaders, Bitcoin and Ethereum, remain stuck at the same levels as in recent weeks. The dispute for market share, or dominance in technical terms, remains at a point of maximum tension. 

Read more

WTI breaches $40 mark as talks of OPEC+ output cuts easing weigh

WTI (August futures on Nymex) extends Friday’s sell-off into the European trading this Monday, following a brief consolidation seen above $40 mark earlier in the Asian session.

Oil News

Forex Majors

Cryptocurrencies

Signatures