USD/CAD Moves Sideways Above 2-Month High
- USD/CAD holds below the ascending channel
- RSI and stochastics tick up
- But MACD indicates more losses
USD/CAD has been on the sidelines over the last few sessions after finding support at the two-month low of 1.4150. The pair remains well below the upward-sloping channel and the bearish crossover within the 20- and 50-day simple moving averages (SMAs).
According to technical oscillators, the stochastic and the RSI are suggesting an upside retracement in the market; however, the MACD is extending its bearish momentum below its trigger and zero lines.
Any drop below the next strong support area between 1.4100 and 1.4150, which includes the 50.0% Fibonacci retracement level of the rise from 1.3420 to 1.4792 at 1.4110, would support a negative scenario until the 1.3980 barrier. Even lower, the 61.8% Fibonacci at 1.3950 and the 200-day SMA at 1.3890 may pause the declines.
However, if the price rises beyond the 38.2% Fibonacci of 1.4270 and the short-term SMAs at 1.4330, it could shift the outlook to the upside and reach the 23.6% Fibonacci at 1.4465. If the bulls successfully surpass the aforementioned level, then the price would return within the ascending channel, meeting the 1.4590 resistance.
To conclude, USD/CAD looks neutral in the very short-term picture and bearish in the last few weeks after it topped at the almost 22-year high of 1.4792.
