Technical Analysis – USDCAD unlocks 2-month high
- USDCAD adds almost 2% from the end of September
- Double bottom pattern completed
- MACD and RSI head north
USDCAD is skyrocketing to a fresh two-month high of 1.3675 as it added almost 2% from the bounce off the 1.3420 trough, achieved on September 25. A double bottom formation has been completed following the break above the 1.3650 line.
The momentum oscillators are confirming the recent bullish pressure, with the MACD finally climbing above the zero level and the RSI extending its positive structure above the neutral threshold of 50. However, the 50- and the 200-day simple moving averages (SMAs) created a bearish crossover in the previous days, reflecting the neutral phase of the previous couple of months.
If the rally continues to the upside, then the market could run towards the next inside swing low of 1.3790 before challenging the bullish spike of the 22-month peak of 1.3947.
On the other hand, a drop beneath the 1.3650-1.3620 support region could open the door for the 50- and the 200-day SMAs around 1.3600 before meeting the 20-day SMA at 1.3555. Diving further, the 1.3420-1.3440 area could act as a turning point again for the market.
All in all, USDCAD had been experiencing a bullish rally, especially after the rise above the neckline of the double bottom pattern of 1.3650.
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