USDCAD has been range-bound for another week within the 1.3520-1.3375 area, while candles keep closing above the lower line of the symmetrical triangle. The sideway move in the RSI and the flattening Ichimoku indicators (Tenkan-sen, Kijun-sen) signal that the pair may extend its neutral performance in the short term.

On the upside, the price would have to finish a session comfortably above the upper line of the symmetrical triangle (1.3500) for the bullish pressures to heat up. If that is the case, the next key resistance to watch could be somewhere between 1.36 and 1.3663, while higher, attention will shift straight to the 2017 peak of 1.3792.

Investors could start selling the pair more aggressively if the market closes below the triangle (1.3440) and more importantly under the 50-day simple moving average (SMA) currently at 1.3390. Falling lower, the bears would need to beat the 1.3340 mark to reach a stronger support at the bottom of the cloud (1.3285).

Meanwhile in the medium-term picture, USDCAD is trading bullish given the higher highs and the higher lows over the past three months.

In brief, USDCAD is expected to hold neutral in short term and bullish in medium term.

USDCAD

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

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD depressed around 1.1260 as recovery loses steam

The EUR/USD pair attempted to recover some ground but lost momentum around 1.1280, now near daily lows. Majors confined to tight intraday ranges amid a limited macroeconomic calendar, central banks’ pessimism. 

EUR/USD News

GBP/USD accelerates decline after losing the 1.2550 level

The Sterling is among the weakest currencies, undermined by Brexit turmoil. GBP/USD extends decline to fresh daily lows. Dollar still down against most major rivals. 

GBP/USD News

USD/JPY: unable to recoup the 108.00 level

Mixed Chinese data fell short of spooking growth concerns, Q2 GDP at 27 years low. Quiet macroeconomic start to the week in Europe and the US. USD/JPY short-term bearish as long as it remains below the 108.30 level.

USD/JPY News

Forex Today: USD attempts a comeback, China growth slows, and Bitcoin recovers

The Chinese economy grew by 6.2% y/y in Q2, the weakest expansion in 27 years. Activity data showed a dramatic improvement, Antipodeans advanced further, Asian stocks traded mixed.

Read more

Gold erases daily upside, sits comfortably above $1400

Despite a drop below the critical handle of $1400 last week, the troy ounce of the precious metal closed at $1415 but failed to push higher on Monday. As of writing, the XAU/USD pair was trading at $1410, losing nearly $5 on a daily basis.

Gold News

Majors

Cryptocurrencies

Signatures