Sat, Feb 04, 2023 @ 09:40 GMT
HomeContributorsTechnical AnalysisUSDCAD Moves Sideways in a Tight Range

USDCAD Moves Sideways in a Tight Range

USDCAD has been moving sideways over the last three weeks within a tight range with the upper boundary at the 1.3700 psychological mark and the 1.3510 support level.

In trend indicators the 20-and 50-day simple moving average (SMAs) posted a bullish crossover, suggesting more upside moves. However, the MACD oscillator is moving sideways above the zero level, while the RSI is pointing slightly down in the positive region, indicating a weak bias.

If the market extends its gains above the 1.3700 mark, then the next barrier to have in mind is the 1.3850 resistance and the 29-month high of 1.3980, registered on October 13. Any moves above this line could endorse the long-term bullish outlook sending the market to the 1.4170 barrier, taken from the high in May 2020.

On the other hand, a drop below the short-term SMAs could open the way towards the 1.3510 support before extending the losses towards the 1.3225-1.3310 support area. Below that, the 200-day SMA at 1.3100 may halt the bearish movements.

Summarizing, USDCAD is neutral in the short-term timeframe, but in the broader outlook it is still bullish. A move beneath the 200-day SMA may change the outlook to bearish.
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