USDCAD is in a trendless state within a horizontal channel since the pullback from the 4-year high of 1.4667, confined by the 1.4218 top and the 1.3854 base.
Technically, the neutral bias could stay in place in the short-term as the MACD is barely moving around its zero and signal lines, while the RSI has yet to show any sustainable recovery above the 50 level.
Should the price extend its latest rebound above the 1.4011 mark, which is the 38.2% Fibonacci of the upleg from 1.2950 to 1.4667, the bulls may push for a close above the 50-day simple moving average (SMA) and the 1.4100 level in order to re-challenge the upper surface of the channel at 1.4218. Breaking that ceiling, the focus will shift to the 1.4500 key resistance area if the 1.4320 barrier proves easy to overcome.
Otherwise, sellers may attempt to clear the 1.3854 floor to print a lower low near the trough of 1.3723 from March 16, confirming the negative trend signals that the bearish cross between the 20- and 50-day SMAs is currently sending. Another leg down could see the price stalling near the 61.8% Fibonacci of 1.3600, while lower all attention would turn to the 1.3516 support and the 200-day SMA at 1.3450.
All in all, USDCAD is trapped within a sideways channel and only a significant break out of the box could determine the market’s 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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.