Dukascopy

USD/CAD returns to weekly R1

FX:USDCAD   U.S. Dollar / Canadian Dollar
Daily outlook - USD/CAD returns to weekly R1

  • As it was expected, the USD/CAD currency rate bounced off from the 100-hour SMA near 1.2677 and once again surged to the weekly R1 at 1.2738, and even managed to bypass it for couple of hours.

  • Fortunately for the Loonie, an announcement of information on the US CPI led to 33-pips depreciation of the Greenback.
  • For the reason, the pair has two main options. Either it will find a support already at the above-mentioned 1.2677 level, or it will slip to a combination of the 200-hour SMA and the monthly PP at 1.2636 and only then make a rebound.
  • The first scenario seems more likely, as it is supported by multiple technical indicators, which send a signal that the rate is oversold.
  • On the other hand, the second option represents a more sizable barrier for the given currency pair.

Comments

what will happen to usdcad next starting day? will this pair start the day from down trend again?
Reply
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