USD/CAD traded slightly higher today, after it hit support at 1.2775. However, the pair is still below the high of November 30th, at 1.2835. Overall, the pair remains above the upside support line drawn from the low of November 10th, and thus, we would consider the short-term outlook to be positive.
That said, we prefer to wait for a break above 1.2835 before we call for a trend continuation. This will confirm a forthcoming higher high and may pave the way towards the 1.2895 zone, marked by the high of September 20th. If the bulls are not willing to stop there, a break higher could see scope for extensions towards the peak of August 20th, at 1.2950.
Shifting attention to our short-term oscillators, we see that the RSI lies above 50, pointing up, while the MACD runs above both its zero and trigger lines. Both indicators detect upside speed, which supports the notion for further advances in this exchange rate.
On the downside, we would like to see a dip below 1.2730, a territory which provided support from Monday until yesterday, before we start examining whether the bears will stay in charge for a while more. This will encourage declines towards the inside swing high of November 25th, at 1.2675, or the low of that day, at 1.2640. If neither territory is able to halt the slide, then we could see extensions towards the 1.2590 area, which supported the rate on November 18th and 19th.
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. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD 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 analyses 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 analyses and must therefore be viewed by the reader as marketing information. JFD 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. 68.02% 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.
Copyright 2021 JFD Group Ltd.