USDCAD has been on the sidelines this week, constrained between the familiar 1.3450 resistance and key upward-sloping line from August 2021 at 1.3400.
The technical picture is leaning softly to the bullish side as the RSI is flattening slightly above its 50 neutral mark. Meanwhile, the MACD is gradually recovering above its red signal line but within the negative zone, while the Stochastic oscillator has already reached its 80 overbought level, reflecting fading upside pressures ahead of the Canadian employment report.
Nevertheless, sentiment will remain jittery if the pair continues to face limitations around the 23.6% Fibonacci retracement of the 1.2006-1.3976 upleg at 1.3511. The tentative resistance trendline from October’s top of 1.3976 is cementing that ceiling. Hence, a clear close above that wall would attract buyers' attention, likely lifting the price straight to the 1.3600 number. Then, another victory here may prompt an extension towards the 1.3700-1.3745 boundary.
In the event of a downside reversal, the bears will fight for a break below the 1.3400 floor and the 20-day simple moving average (SMA) with scope to reach the support trendline from June’s low at 1.3330. Slightly lower, the 200-day SMA could immediately calm selling tendencies near the 38.2% Fibonacci of 1.3223. If it fails, the decline may pick up steam towards the 1.3130 handle.
Summing up, USDCAD is maintaining a neutral short- and medium-term outlook. A decisive close above 1.3511 or below 1.3330 could navigate the market accordingly.
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 consolidates modest rebound around 1.0650
EUR/USD is about to end the week hovering around 1.0650, slightly below the level it had a week ago. Earlier on Friday, the pair bottomed at 1.0614, the lowest intraday level since March. The US Dollar lost momentum late on Friday on lower Treasury yields.
GBP/USD heads for lowest weekly close since March
GBP/USD is holding firm with weekly losses, unable to move away from 1.2200. The Pound is among the worst performers of the week after the Bank of England's decision to keep interest rates unchanged.
Gold consolidates above $1,920 ass US yields edge lower
Gold price clings to small recovery gains above $1,920 following Thursday's sharp decline. Following the mixed September PMI data from the US, the benchmark 10-year US Treasury bond yield is down nearly 1% on the day at around 4.45%, allowing XAU/USD to stay in positive territory.
Stablecoin exodus: Why are investors fleeing crypto’s safe haven?
In a year filled with uncertainty in the cryptocurrency space, a new trend has been unraveling: a stablecoin exodus that has now lasted for 18 consecutive months and has seen the market dominance of stablecoins drop to 11.6%.
Cainiao subsidiary to register for IPO as soon as next week
BABA stock surged more than 4% in Friday’s premarket after the Chinese ecommerce leader announced that its shipping and logistics business, Cainiao, will file for an initial public offering (IPO) in Hong Kong as soon as next week.