USD/CAD Technical Outlook
- USD/CAD working in direction of 2-yr+ degree positioned round 12950
- Will it lastly break by way of if examined, or flip value again decrease once more?
USD/CAD Technical Outlook: Running Towards Significant Long-term Level
USD/CAD is coming off a good set-up from confluent assist consisting of a trend-line from the summer season and the 200-day transferring common. The dash greater has a serious long-term degree of resistance in focus across the 12950 degree, one which has acted as a ceiling for over a 12 months.
The degree dates to the ultimate buying and selling session of 2019 previous to the pandemic panic rip. The degree held as assist briefly in November 2020 earlier than turning into resistance on three events since. The most up-to-date reversal off the 12950 space was in December.
With the best way USD/CAD is ripping it will not be lengthy earlier than we see resistance examined. Perhaps a set-back develops previous to its arrival, however total it’s anticipated sooner or later we are going to see one thing develop round 12950.
That one thing could also be one other prime, or at the very least a brief one, or it might be a breakout that paves the best way for even greater costs. As per common, it’s all in regards to the value motion that unfolds round main ranges. Does a rejection develop or sturdy momentum play out – or one thing in between?
Too quickly to inform, clearly, however value retaining on the radar as time strikes on. For now, except lengthy from good ranges (i.e. confluent assist), new longs don’t maintain a lot danger/reward enchantment as a set-back may develop that leaves contemporary positions weak. There isn’t actually any good degree to lean on for setting stops right now. Shorting holds no enchantment within the absence of any significant resistance, however that would ought to we quickly get to 12950.
USD/CAD Daily Chart
USD/CAD Chart by TradingView
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—Written by Paul Robinson, Market Analyst
You can comply with Paul on Twitter at @PaulRobinsonFX
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