Canadian Dollar Technical Forecast: USD/CAD, AUD/CAD, EUR/CAD
- USD/CAD approaches triangle resistance after gloomy week for the Loonie
- AUD/CAD is displaying constructive divergence with its RSI oscillator, a bullish signal
- EUR/CAD faces a tricky path larger after fifth consecutive weekly drop
USD/CAD Technical Forecast: Bullish
The Canadian Dollar misplaced floor versus the US Dollar final week, with USD/CAD rising extra than 1.5%, accelerating upside from the prior week. That increase stemmed from a rising trendline that serves as an Ascending Triangle’s assist degree. The sample is inherently bullish, with this one, specifically, serving as a doable reversal sample from the previous downward development.
Prices grappled with the 23.6% Fibonacci retracement degree on Friday following a break above the 50-day Simple Moving Average (SMA). The subsequent degree to check, ought to costs rise this week, would be the triangle’s horizontal degree of resistance. If costs had been to slice above the triangle, it may open the door to additional energy.
USD/CAD Daily Chart
Chart created with TradingView
AUD/CAD Technical Forecast: Bullish
AUD/CAD dropped over a full proportion level final week, aided by the Australian Dollar’s reactive risk-off weak point. The foreign money pair fell to a brand new multi-year low, its lowest level since April 24, 2020. Despite the contemporary lows, there are indicators {that a} reversal might be close to. Last week’s new low corresponded with a better low within the Relative Strength Index (RSI).
That divergence between worth and the RSI oscillator is a bullish sign. That mentioned, if a reversal does happen, the falling 50- and 200-day SMAs would function potential resistance. Piercing above these ranges would put the decrease highs seen within the previous downtrend into focus. Alternatively, a transfer decrease has the potential to invalidate the constructive divergence seen and push the RSI studying again into oversold territory.
AUD/CAD Daily Chart
Chart created with TradingView
EUR/CAD Technical Forecast: Neutral
EUR/CAD dropped for a fifth consecutive week, reversing early-week energy after failing to eclipse the falling 50-day Simple Moving Average (SMA) on an intraday transfer. The 38.2% Fibonacci retracement additionally appeared to offer some resistance. A transfer larger would doubtless see these ranges pose resistance once more.
If costs pierce above these ranges, it could open the door for a check of the 100-day SMA, which capped upside again in December. The 26-day Exponential Moving Average (EMA) additionally seems to be a sticking level for bulls since 2022 kicked off. A transfer decrease would rapidly deliver the January low at 1.4100 again into play. A break of that degree would doubtless introduce additional weak point.
EUR/CAD Daily Chart
Chart created with TradingView
— Written by Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the feedback part under or @FxWestwater on Twitter
component contained in the component. This might be not what you meant to do!
Load your utility’s JavaScript bundle contained in the component as a substitute.
