USDCAD skyrocketed to a higher high on yesterday’s session at 1.3543, which is a new 26-month peak. The pair looks to be creating a floor above the 1.3400 barrier while the RSI and the MACD oscillators are holding in overbought levels, suggesting that the next move may be to the downside.
Traders, however, would be more eager to buy if the price manages to surpass the nearby top at 1.3543. If this is successfully breached, then the rally may next rest somewhere near the 1.3715 resistance, taken from the peak in June 2020, while a closure above that level may push the market until the inside swing low of 1.3850, registered in April 2020.
On the flip side, the selling pressure could accelerate if the market deteriorates below the 1.3420 former strong support area. Such a move could next bring the 1.3225 key barrier under the spotlight, which if violated could trigger sharper losses probably towards the 20- and 50-day simple moving averages (SMAs) at 1.3190 and 1.3010 respectively.
Summarizing, USDCAD is expected to show improvement if the price overcomes the latest high. On the other hand, a sharp selling interest beneath the 200-day SMA and the long-term uptrend line is required to switch the outlook to negative.