- The USD / CAD is back the last two days.
- The bulls are looking to break above the 100-day SMA for additional gains.
- Momentum oscillators justify any directional bet, pending confirmation.
The USD / CAD pair is moving lower during the European session on Wednesday, falling for the third day in a row and heading towards the 1.2300 region.
USD / CAD daily chart
On the daily chart, the USD / CAD pair has posted substantial gains after breaking a trading range between 1.2050 and 1.2180 on June 16. The pair reached levels last seen in April and has now corrected almost 200 pips from the high.
If the price manages to break above the daily high at 1.2330, then it could target the previous day’s high at 1.2403 again.
With that said, USD / CAD is moving below the 100-day SMA at 1.2414. A sustained move above this level is required to test the horizontal resistance level of 1.2500.
The RSI is at 54, which implies that the bulls have plenty of room to scale back to the April 23 high of 1.2534.
On the other hand, if the price fails to climb and stay above the daily high of 1.2330, then it will open the doors for the move lower towards the July 17 low of 1.2262.
Lower down, market participants could target the horizontal support level of 1.2220, followed by the June 16 low of 1.2157.
USD / CAD additional levels
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