USD/CAD Rests Near 50-Day SMA Above Downtrend Line
XM Group | Dec 09, 2022 04:54AM ET
The MACD oscillator is holding above its trigger and zero lines; however, the stochastic posted a bearish cross within its %K and %D lines near the overbought territory, indicating that the next move may be to the downside.
Should the price close comfortably above the 1.3700 handle, which has been unbreakable over the past month, traders could add more value to the pair, pushing the market up to 1.3850. More advances could drive the bulls until the 29-month high of 1.3980, registered on October 13.
In the negative scenario where the 50-day SMA fails to halt downside movements at the moment, if the market moves lower, the 20-day SMA at 1.3450 could be the immediate support. If this proves easy to overcome this time, the decline may next pause somewhere between 1.3225-1.3310, investors could shift attention to the 200-day SMA at 1.3050.
In brief, USDCAD is showing some positive signs in the short-term, while in the bigger picture the outlook will brighten if there is a climb above 1.3980.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.