News

USD/CAD technical analysis: Recovery from multi-month lows falters ahead of 100-day SMA

  • Having shown some resilience below the very important 200-day SMA, the pair staged a goodish bounce from multi-month lows – set earlier this week.
  • The momentum faltered ahead of 100-day SMA, with the pair snapping three consecutive days of up-move amid a modest rebound in Crude Oil prices.

The mentioned 200-DMA support coincides with the lower end of over four-month-old ascending trend-channel, which should now as a key pivotal point for any further near-term depreciating move.

Meanwhile, technical indicators on the daily chart have managed to recover from the bearish territory but are yet to gain any meaningful positive traction, warranting some caution for bullish traders. 

Hence, it would be prudent to wait for a sustained move beyond 100-DMA resistance, currently near mid-1.3300s, before positioning for any further up-move towards reclaiming the 1.3400 handle.

USD/CAD daily chart

Articles You May Like

USD/CHF is correcting higher – Commerzbank
FX Week Ahead – Top 5 Events: August Eurozone PMIs & EUR/USD Rate Forecast
Germany in a technical recession? – Deutsche Bank
GBP/USD: Correcting higher – Commerzbank
US Sec of State Pompeo says US will take action to prevent Iranian tanker delivering oil to Syria

Leave a Reply

Your email address will not be published. Required fields are marked *