Usdcad Momentum Favors Upside

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Usdcad Momentum Favors Upside

Usd/Cad Advances To 1.3560, Momentum Favors Upside

It is the 2nd session in a row of consistent gains seen in the USD/CAD pair. The Dollar/Canadian Dollar pair is seen trading near 1.3560 with a bullish bias.

The immediate resistance for the USD/CAD is located at 1.3588, which is the weekly high, followed by the 1.3600 level (psychological resistance.) According to experts, a break of 1.3600 is needed for the USD/CAD to touch the next level at 1.3614 and 1.3650.

Usd/Cad: Macd Hints At Divergence

Technical readings show that the RSI (14-period) is still above the 50 level on the D1 chart. This is a sign of bullish momentum and goes in line with the readings of the MACD indicator.

look at the MACD shows that the main line is still printing above the center line. This suggests bullish momentum but also hints at a possible divergence. That's why the safer option is to wait for the confirmation via the MACD indicator.

Another scenario is a break of the 1.3550 support, which will send the USD/CAD towards the 1.3522, where the 50 EMA is located. A clear break of these levels with sufficient momentum will signify CAD strength and expose the 1.3511 level (23.6 fib retracement.)

In case of extreme buying pressure seen in the CAD, a revisit to the 1.3500 or the 1.3477 is also highly likely. But for now, the technical readings favor a strong USD against the CAD.

If we look at the USD/CAD in terms of trend analysis, there's no better indicator than the SMA on the D1 charts. The 20 SMA is located at 1.3539 and highlights the short-term interest of the traders.

The 50 SMA on the USD/CAD D1 is present at 1.3513 and will act as support in case of USD selling. The 100 and the 200 SMA lines are seen near 1.3487 and 1.3503 respectively.

Going forward, the USD/CAD will remain closely linked to any developments in the oil market as the CAD is affected by commodity prices.

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