- USDCAD retreats but meets support at 1.3410
- Both the daily oscillators paint a mixed picture
- For the picture to brighten, a break above 1.3535 may be needed
USDCAD slid in the last few days after hitting resistance once again at around 1.3535. That said, the retreat stopped near the 1.3410 barrier, keeping the pair above the prior downtrend line drawn from the high of November 1.
If more bulls are willing to jump into the action from near the 1.3410 barrier, the pair may advance and challenge again the 1.3535 zone, but for the near-term outlook to be considered positive, a break higher may be needed. Such a move would confirm a higher high on the daily chart and may see scope for extensions towards the 1.3620 territory, marked by the high of December 7.
The daily oscillators are sending mixed signals, casting more doubt with regards to where this pair may be headed next. The MACD lies slightly above zero, but still below its trigger line, while the RSI, although slightly below 50, shows signs of turning up again.
On the downside, a break below 1.3410 may encourage more selling, perhaps towards the low of January 12 at 1.3345, the break of which could carry extensions towards the crossroads of the aforementioned downtrend line and the 1.3265 zone.
To recapitulate, USDCAD met some buy orders near the key support level of 1.3410. However, the move signaling an uptrend continuation may be a decisive break above 1.3535.
