Technical Analysis: USDCAD gyrates inside key SMA envelope as FOMC week begins

USDCAD holds onto a three-week-old support line, also staying between 50 and 100-SMAs of late. Even so, the gradually rising RSI line and an impending cross-over of the MACD line to the signal line keep buyers hopeful. However, a clear upside break of 50-SMA level near 1.2610 becomes necessary for the bulls to battle the 1.2680 and the 1.2730 resistances. On the top, the monthly high near 1.2810 becomes the buyers’ favorite, given the upside momentum gains fundamentals support from the Fed and BOC CPI.

Bears have a comparatively tough task as the stated support line guards the quote’s immediate declines near 1.2560. Following that, 100-SMA level of 1.2525 and the early July top near 1.2450 will be crucial to watch. In a case where USDCAD sellers keep reins past 1.2450, an extended south-run to late June’s low near 1.2250 becomes the key to follow.

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