USDCAD approaches key resistance inside 250-pip trading range
USDCAD bounced off its monthly low on Friday, approaching a convergence of the 100 and 50-SMA around 1.2960-65 at the latest. The recovery moves also gain support from the upbeat RSI, not oversold, as well as recently improving MACD signals. That said, the Loonie pair’s upside past 1.2965 needs validation from the 1.3000 psychological magnet before approaching the 1.3080-85 resistance area. In a case where the prices rally beyond 1.3085, the monthly top of 1.3223 will be in the spotlight.
Meanwhile, pullback moves could aim for the 50% Fibonacci retracement of June-July upside, around 1.2870 before challenging the stated trading range’s lower end, around 1.2820. It’s worth noting that a clear downside below 1.2820 could become detrimental for the USDCAD bulls if backed by a clear break of the 1.2800 round figure. In that case, the bears could aim for June’s low near 1.2520.
Overall, USDCAD pares recent losses inside a five-week-old trading range.
