HomeContributorsTechnical AnalysisUSDCAD Explodes to a Fresh 6-Month High

USDCAD Explodes to a Fresh 6-Month High

  • USDCAD in an aggressive advance, smashing previous resistance zones
  • Formation of a golden cross boosts bulls’ appetite
  • Momentum indicators ease but remain deeply positive

USDCAD managed to totally erase its recent downside correction and edge higher towards a fresh six-month peak of 1.3784. However, the pair has surrendered some gains in the last couple of sessions after the short-term oscillators pointed at overbought conditions.

Should buying interest persist, the pair could re-test the recent rejection region of 1.3784. A break above that zone could open the door for the March resistance of 1.3803. Even higher, the 2023 high of 1.3860 may cap further advances.

Alternatively, if the pair corrects to the downside, a couple of previous resistance regions such as 1.3693 and 1.3666 could provide initial downside protection. Sliding below the latter, the price could then test 1.3522, which overlaps with the 50-day simple moving average (SMA). Should that barricade also fail, the spotlight could turn to the September low of 1.3377.

In brief, USDCAD has experienced a solid rally in the past few sessions, storming to a fresh six-month peak just shy of the 1.3800 handle before paring some gains. Is this the beginning of a pullback or are the bulls poised to challenge the 2023 highs?

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