USDCAD has ascended after encountering support along an upward trend line.
- USDCAD rebounds off the uptrend line
- Holds within short-term SMAs
- MACD and RSI muted bearish momentum
USDCAD is hovering within the downward sloping 20- and 50-day simple moving average (SMA) lines but is still standing above the medium-term rising trend line. The pair found support near the 1.3655 support level and the bearish correction may come to an end.
Moving higher, the market may retest the 20-day SMA at 1.3745 before rallying towards the 1.3850 resistance. Above these obstacles, the pair would reach the 13-month high of 1.3900.
On the other hand, if the bears take the upper hand and break the uptrend line to the downside would test the 1.3630-1.3655 region. More downside movements could open the way towards the 1.3565 barricade, taken from the low on October 10 before challenging the 200-day SMA at 1.3520.
The technical oscillators muted the bearish action. The MACD is marginally below its trigger and zero lines, while the RSI is moving beneath the 50 level and is ready to cross it to the upside, indicating a bullish movement in the next few sessions.
To sum up, USDCAD is showing some signs of a resumption of the upward movement in the short-term, while in the medium-term it has been posting higher highs and higher lows since July 14.