HomeContributorsTechnical AnalysisUSDCAD Remains Bullish With Weak Momentum

USDCAD Remains Bullish With Weak Momentum

  • USDCAD fails to extend above 1.3785
  • Stochastics suggest bearish retracement

USDCAD is still developing above the short-term simple moving averages (SMAs), which are ready for a bullish crossover, and above the medium-term uptrend line.

Technically, the MACD oscillator is moving sideways above the zero level; however, the stochastic oscillator is indicating a negative movement as it posted a bearish cross with %K and %D lines in the overbought region.

If there are some negative retracements, immediate support could come from the uptrend line at 1.3685 ahead of the strong 200-day SMA near the 1.3590 barrier. A dive beneath this obstacle could switch the bias to a more bearish one, hitting 1.3455.

On the other hand, a climb beyond the 1.3785 resistance could meet immediate resistance at 1.3845 before challenging the 13-month peak of 1.3900. Even higher, the July 2022 top at 1.3975 could endorse the longer-term bullish structure.

All in all, USDCAD is showing some signs of weakening momentum, but the broader outlook remains positive.

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