Sat, Jan 28, 2023 @ 16:49 GMT
HomeContributorsTechnical AnalysisUSDCAD Loses Steam Around Falling Line

USDCAD Loses Steam Around Falling Line

USDCAD is touching the descending trend line after the jump above it in the previous week. The price is returning lower after the pullback off the 1.2645 resistance, remaining within the 20- and 40-day simple moving averages (SMAs). The MACD is flattening near the zero level, while the RSI is ticking slightly up near the neutral-threshold of 50.

Immediate resistance could be faced near the 1.2645 barrier and the Ichimoku cloud before travelling towards the 1.2750 level. An upside move above these lines could meet the 23.6% Fibonacci retracement level of the down leg from 1.4668 to 1.2365 at 1.2907 and the 1.2950 hurdle. Marginally higher, the 200-day SMA could attract traders’ attention around the 1.3000 psychological level.

On the other side, a drop below the 20-day SMA could take the pair until the more-than-three-year-low of 1.2365, ahead of 1.2250, registered in January 2018. More downside pressure could open the way to the bears, hitting the September 2017 trough at 1.2060.

Overall, USDCAD has been in a downtrend since March 2020, despite the latest break above the falling trend line. A climb above the 200-day SMA could change the bearish outlook to bullish.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading