XM - Analytics

XM

563.25 6.75/10
70% of positive reviews
Real

Technical Analysis – USDCAD extends correction to below 1.34

USDCAD continued to retreat from the January high of 1.4689 to hit a 3-month low of 1.3385 on Tuesday. Prices bounced back above 1.34 today but the bias remains to the downside.

The momentum indicators are all pointing to a bearish bias for the near term. RSI is slightly above oversold territory, while the MACD maintains a descending trend. Further losses would take prices towards the 200-day moving average, which is the only remaining bullish indicator. The 200-DMA also corresponds with a previous support and resistance level around 1.3260. If broken, this would increase the bearish bias.

A recovery above the 1.37 handle is needed to weaken the downside bias. This would also help the pair gain momentum for a push into the Ichimoku cloud and above the 50-day moving average, which would signal the end of the current correction.

Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.



To leave a comment you must be or register