Forex » USD/CAD price is valid at less than 1.3730
- USD/CAD is struggling to defend the rebound off its two-week low inside the short-term triangle.
- Convergence of the SMA-50 moving average, first line of the triangle challenges the buyers.
- The bears on a bumpy path to progression before scolding him in control.
- Sustained trading past the key moving average, the bullish chart pattern and the absence of negative momentum oscillators cleared the bulls.
USD/CAD rose from 1.3715 to 20 higher as bulls faced adversity during the early hours of the day of the Federal Reserve (Fed) charges decision. In doing so, the USD/CAD pair is struggling to extend yesterday’s recovery moves in the forex to lower levels from fortnightly lows inside a two-week-old descending triangle formation.
That said, the pair’s latest hesitation may have to do with the inability to clear the confluence of resistance at 1.3730, including the SMA-50 moving average and the upper line of the indexed triangle.
However, the capacity of the pair USD/CAD to provide successful trades above the major moving averages to join bullish signals from the MACD and the firmer, non-overbought RSI (14), keep the bulls hoping to overcome the hurdle at 1.3730.
In these cases, buyers could aim for the monthly high around 1.3865, with the 1.3800 round number acting as an intermediate stop, before undertaking a climb to the 2022 high at 1.3977 and then towards the level. psychological of 1.4000.
On the other hand, ours should be validated from the lower line of the indicated triangle, around 1.3650. Likewise, the support of the SMA-200 moving average near 1.3575 appears as a crucial challenge for bears. I should note that the current moving SMA-100 may offer immediate support at 1.3695.
Overall, the USD/CAD pair should remain strong in forex, but a pullback cannot be ruled out.
By Anil Panchal, FX Street
He worked at Edelweiss Financial Advisors Ltd from 2007 to 2013 as a research analyst for the commodities sector. Subsequently, Anil joined Admiral Markets from April 2013 to January 2019 where he worked as a Forex analyst. Job roles at both locations were to follow the macro economy and conduct fundamental and technical analysis of commodities and the Forex market respectively. At FXStreet, he mainly writes Asset/Tech news articles on various device pairs, commodity pairs and even some equity markets. It also helps to provide macro/event data overviews and banking reports whenever needed.
The opinions expressed here are those of the author alone and do not necessarily reflect the views of Forex Quebec. Every investment and trading move involves risk, you should do your own research when making a decision.
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