- USDCAD starts a battle with 200-day SMA
- However, MACD and stochastic suggest bearish retracement
USDCAD has been recouping some losses after the strong bearish movement in the preceding two sessions but is currently finding strong resistance near the 200-day simple moving average (SMA) at 1.3480. The pair has been developing within an upward sloping channel over the last month.
Technically, the MACD oscillator is heading beneath its trigger line but is still holding above its zero level. Also, the stochastic are moving lower after the bearish crossover within its %K and %D lines.
If the price could edge higher and break the 200-day SMA to the upside, it could revisit the 1.3585 resistance level. Piercing though that wall, the pair may challenge the 1.3630-1.3655 resistance zone.
On the flipside, should the pair reverse lower, immediate support could be found at the 50-day SMA at 1.3420 ahead of the 1.3410 support. A move below that region could trigger a retreat towards the 1.3355 support. In case of a downside violation, the bears may then attack the 1.3285 barricade, which held strong in the beginning of the year.
In brief, USDCAD retains a bullish tone despite the signs in the technical oscillators. Can the pair extend its advance or are we heading for a reversal?
