- USD/CAD rallies as much as a zone of resistance from historic highs on the high of a long-term vary.
- The pair’s sturdy rally might start to wane within the face of the agency resistance.
- There aren’t any indicators but of a reversal decrease, nevertheless, and the brief and medium-term tendencies stay “up”.
USD/CAD reaches the highest of a multi-year vary and it’s possible the pair will meet stiff technical resistance at these ranges.
USD/CAD Each day Chart
USD/CAD has reached a zone (orange shaded rectangle) within the 1.3800s and 1.3900s composed of resistance from historic highs. These embody the August 2024 excessive, the November 2023 excessive and the October 2022 excessive. The peaks have been highlighted with blue circles within the chart above. They comprise the highest of the pair’s long-term sideways vary.
It’s attainable this will likely mark a turning level for USD/CAD and worth will roll over and start a leg down inside its vary, nevertheless, there aren’t any indicators but from worth confirming this. Though the pair has shaped two Doji Star Japanese candlesticks in a row during the last two days (thus far), it might require an extended bearish candle to substantiate that these shaped a part of a reversal sample. Such a down day has not but materialized.
The brief and medium-term tendencies stay bullish and given the precept that “the development is your buddy” the chances are tilted in favor of extra upside. As such, USD/CAD might nonetheless go greater to the very top quality at 1.3977.
The Transferring Common Convergence Divergence (MACD) momentum indicator is at comparatively excessive ranges and is bending over. It seems to be prefer it would possibly cross beneath the pink sign line giving a promote sign – however that has not occurred but. If it does, it is going to be additional proof of a bearish reversal.
