We saw strong selling yesterday in the Canadian Dollar, with USD/CAD making a jump of around 150 pips to the upside. The pair came just shy of around 15 pips from reaching its psychological barrier of 1.30, but probably left that for either today or the remaining days of the trading week.
The pair is still holding strong within the upwards-moving channel and is on verge of testing the 1.30 mark again. A move back above the 1.29600 level could push the pair towards the 1.30 level, where a clear break could set the stage towards the next resistance on our radar, which is at 1.31600, June 2017 low.
The RSI is above 50 and pointing higher and the MACD is above 0 and is above the trigger line. Both are bullish indications.
That said, given that yesterday’s rally appears overstretched, we stay cautious that USD/CAD could complete a small retracement, before heading higher.
On the downside, if we start seeing a strong reversal back towards the 1.28650, and eventually a break below that level, then we could expect more declines to come in USD/CAD.
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The pair is still holding strong within the upwards-moving channel and is on verge of testing the 1.30 mark again. A move back above the 1.29600 level could push the pair towards the 1.30 level, where a clear break could set the stage towards the next resistance on our radar, which is at 1.31600, June 2017 low.
The RSI is above 50 and pointing higher and the MACD is above 0 and is above the trigger line. Both are bullish indications.
That said, given that yesterday’s rally appears overstretched, we stay cautious that USD/CAD could complete a small retracement, before heading higher.
On the downside, if we start seeing a strong reversal back towards the 1.28650, and eventually a break below that level, then we could expect more declines to come in USD/CAD.
Check out our JFD Research page on our website and Trader's Espresso / Trader's Tea Time videos on Youtube.
Also, sign up for our weekly Strategic Report on the JFD Research page on our website. The Report is released every Monday. Don't miss!