Bull flag keeps USDCAD buyers hopeful
USDCAD grinds lower inside a bullish chart pattern. That said, the 50-DMA hurdle surrounding 1.3570 guards the Loonie pair’s immediate upside before highlighting the flag’s upper line, around 1.3620. In a case where the quote rises past 1.3620, the odds favoring a run-up toward the monthly high of 1.3976 and then to the 1.4000 psychological magnet can’t be ruled out. Following that, the theoretical run-up challenging the previous peaks marked in 2020 and 2016, near 1.4670, could be expected.
Meanwhile, the 50% Fibonacci retracement level of June-October upside, near 1.3250, could restrict short-term USDCAD downside ahead of the tops marked in July and early September, near 1.3220 and 1.3210 in that order. Should the quote drops below 1.3210, the 1.3200 round figure will precede the stated flag’s bottom line, surrounding 1.3115, to challenge the pair’s further downside. It’s worth noting, however, that the bear’s dominance past 1.3115 won’t hesitate to recall August month’s low of 1.2727 to the chart.
