- USDCAD slows pace after fresh four-year high
- Bears wait below 1.4150, but uptrend could stay intact
- BoC rate announcement due at 14:45 GMT
USDCAD broke above a neutral symmetrical triangle with a bang last Friday, surpassing November’s four-year high of 1.4176, but since then the pair has been losing pace, raising questions about whether the rally is nearing a peak.
With the RSI and the stochastic oscillator hanging near overbought levels, a slowdown is likely. Yet only a drop below the 1.4150 barrier could activate fresh selling orders toward the 1.4075-1.4100 area. Another failure there could confirm additional losses toward the 1.4000 level, while a steeper decline could push toward the 50-day exponential moving (EMA) at 1.3945.
On the upside, if the bulls successfully claim the 1.4200 number, they could next target the 1.4265-1.4285 resistance trendline zone. A continuation above 1.4300 could take a halt near 1.4350 or around the 1.4400 mark.
Overall, USDCAD is still in a positive trajectory and any potential declines could present a “buying the dip” opportunity. A move below 1.4150 could trigger the next bearish action, whilst a move above 1.4200 could shift the attention back to the upside.