USD/CAD Technical Outlook
- USD/CAD been caught transferring horizontally after surge increased
- Consolidation for additional positive factors or draw back failure?
USD/CAD Technical Outlook: Sideways Pattern to Determine Next Move
USD/CAD has successfully gone nowhere the previous week-and-a-half after surging off the January lows. The query is whether or not it’s a consolidation for extra positive factors, or will USD/CAD roll over. It will seemingly take a couple of extra days earlier than we’ve got a decision, however there are some issues to look at for both state of affairs.
Giving the surge from the lows the good thing about the doubt, this might very properly be a digestion interval earlier than working increased. A bit extra sideways value motion might do that state of affairs some good as a stronger base will get constructed.
A breakout above 12797 would have USD/CAD off in the direction of vital long-term resistance round 12950. This is a stage we’ve got mentioned rather a lot over the previous few months. It dates to December 2019 and has been in play on a number of events since, with the final inflection level occurring in December.
On the flip-side, additional consolidation adopted by a transfer out of the vary to the draw back might arrange for a swift transfer again to huge assist. A break down under 12650 can have the latest congestion lows breached and sure improve promoting stress.
In this state of affairs, the goal could be confluent assist between the June trend-line and rising 200-day transferring common. The two presently converge across the low 12500s. This is a transferring goal in fact with each the trend-line and common sloping increased.
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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