Loading...
by Charalambos Pissouros

USD/CAD Surges and Hits Resistance at 1.3070

USD/CAD surged yesterday, after it hit support near the crossroads of the 1.2930 level and the short-term upside line drawn from the low of the 1st of October. Subsequently, the rate emerged above the downside resistance line drawn from the peak of the 6th of September, to eventually stop near 1.3070. Given that the rate is now trading above both the aforementioned lines, we would consider the near-term outlook to be positive.

That said, we would like to see a decisive break above 1.3070 before we get confident on larger bullish extensions. Such a move could initially pave the way for the 1.3115 barrier, marked by the inside swing low of the 7th of September. Another break above 1.3115 could encourage the bulls to aim for the peak of the 11th of the month, at around 1.3175.

Shifting attention to our short-term oscillators, we see that the RSI has topped slightly above 70 and moved back below that line, while the MACD, although above both its zero and trigger lines, shows signs that it could start topping as well. These indicators detect slowing upside momentum and suggest that a setback may be in the works before the next positive leg, perhaps for a test near the psychological zone of 1.3000, or the upside line drawn from the low of the 1st of October.

On the downside, we would like to see a clear dip below 1.2930 before we start assessing whether the bulls have abandoned the battlefield, at least in the short run. Such a break could confirm the rate’s return below the downside line taken from the peak of the 6th of September and could open the path for the 1.2885 zone. If that zone fails to stop the rate from dropping further, then we may see a test near 1.2855, a support defined by the low of the 4th of October.

USDCAD 4-hour chart technical analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT