VOT Research Desk
Prior to Thursday’s European session, USDCAD finds it difficult to protect buyers at 1.3540.
In doing so, the Loonie pair moves closer to the horizontal resistance zone that has been in place for one week following its recovery from the 100-HMA.
The 100-HMA breakout is supported by positive MACD signs, thus the USDCAD prices are expected to overcome the next barrier near 1.3550.
The 200-HMA surrounding 1.3580 presents a hurdle for the pair purchasers, nevertheless . Notably, the USDCAD pair’s successful trading above 1.3580 gives buyers the opportunity to aim for a monthly high of about 1.3810 .
The quote’s immediate downside is capped by the 100-HMA at about 1.3510. The latest low near 1.3385 is then followed by an upward-sloping trend line from Tuesday, around 1.3455, to confront the USDCAD bears.
It is possible that the pair will reach July 2022 highs around 1.3225 if it continues to trade weakly after 1.3385. Overall, USDCAD is still on the bull’s radar, but the amount of gain is likely to be constrained unless the quotation overcomes the 200-HMA resistance.
|
Daily SMA20 |
1.3647 |
|
Daily SMA50 |
1.3519 |
|
Daily SMA100 |
1.3222 |
|
Daily SMA200 |
1.2973 |
