Technical Analysis – USDCAD struggles to remain above 1.4100 after 4½-year high
- USDCAD posts notable gains
- RSI and stochastics suggest more bullish movements
USDCAD is creating a remarkable rally today, towards a fresh four-and-a-half-year high of 1.4176, breaking the significant 1.4100 round number, but the question is whether the price will end the day above this area. The next strong resistance for traders to look out for is the 1.4300 psychological mark.
In the negative view, a drop below the 1.4100 level may take the pair towards the 1.4020 inside swing high ahead of the 20-day simple moving average (SMA) at 1.3957 and the previous bottom of 1.3925.
The technical oscillators suggest more bullish movements as the RSI is sloping upwards, approaching the overbought territory, while the stochastic oscillator is also heading upwards after the positive cross between its %K and %D lines.
To conclude, USDCAD has been in an upside tendency following the pullback off 1.3440, and as long as it holds above the 200-day SMA, the outlook remains bullish.
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