USD / CAD Price Analysis: Rises to New Weekly Highs Above 1.3200 Level

- Advertisement -
  • USD / CAD gains traction for the third day in a row on Thursday.
  • Mixed technical indicators warrant caution before opening new bullish positions.
  • A sustained weakness below the 1.3170 support will negate any positive bias.

The USD / CAD pair has extended its recent rebound from the 1.3100 level, at a month-long lows, and gained traction for the third day in a row on Thursday. Strong intraday positive momentum has pushed the pair to fresh weekly highs, with the bulls now looking to build above the 1.3200 level.

The mentioned level is closely followed by confluence resistance at 1.3215-20, which comprises the 200-period SMA on the 4-hour chart and the 38.2% Fibonacci retracement from the recent drop from 1.3421 to 1.3099. A convincing breakout will be seen as a new trigger for the bulls and will pave the way for additional gains.

- Advertisement -

Meanwhile, the technical indicators on the 4-hour chart have been gaining ground and support the prospects for an extension of the up move. However, the oscillators on the daily chart have yet to confirm a bullish bias and have already moved into the overbought territory on the 1 hour chart. This, in turn, warrants some caution before positioning for any further short-term bullish movement.

That being said, some subsequent purchases above the 1.3215-20 hurdle have the potential to lift the USD / CAD pair towards horizontal resistance at 1.3255-60. Momentum could extend further and help the pair target a recovery from the 1.3300 level.

- Advertisement -

On the other hand, any significant pullback could now be seen as a buying opportunity and remain capped near the 23.6% Fibonacci retracement around the 1.3170 region. Failure to defend the aforementioned support will nullify any short-term bullish bias and make the pair vulnerable to accelerate the decline towards the round 1.3100 level.

USD / CAD 4-hour chart

USDCAD

Credits: Forex Street

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles