The USDCAD has been trending larger, although its momentum has began to gradual.
One key issue has been resistance at this yr’s excessive, set again in August at 1.39458. This week, excessive costs have approached however stopped simply in need of that stage, making a ceiling.
In fact, ceilings will be damaged. If that occurs, merchants will probably eye the 2022 highs at 1.3977. A transfer above that mark would open the door to extra upside, pushing the USDCAD to its highest stage in over 4 years (since Might 2020).
In trending markets, counter-trend merchants should show they will take again management. Put merely, if sellers cannot regain management, they’re not profitable. How do they regain management? By shifting the value under key technical ranges.
First, I’m watching the 100-hour shifting common (MA) at 1.3911, which has been trending larger. We’ve seen the USDCAD dip under this MA a number of occasions previously dozen buying and selling days, together with yesterday and at the moment, however these breaks haven’t gained traction. At present, the value is again above the 100-hour MA at 1.3923 (with the 100-hour MA itself at 1.3911).
Subsequent up can be the rising 200-hour MA, presently at 1.3879. It’s price noting that the USDCAD hasn’t traded under this stage since October 2, practically a month—fairly a stretch.
In order we head into subsequent week, sellers will solely begin to win if they will push and maintain the value under each the 100-hour MA after which the 200-hour MA.
With out that, sellers aren’t profitable. Patrons are profitable
Technical Evaluation of USDCAD
Development and Momentum:
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USDCAD trending larger, however momentum slowing.
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Key resistance at 2024 excessive (1.39458) reached in August.
Resistance Ranges:
Help Ranges:
Key Ranges to Watch:
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Break above 1.39458 resistance opens door for extra upside momentum.
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Failure to interrupt above 1.39458 retains ceiling intact.
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Sellers want to maneuver under 100-hour MA (1.3911) and 200-hour MA (1.3879) to regain management.
