The USD/CAD
ties to go back to its midterm bullish trend after having retraced to the
downside as shown on the daily chart. The pair managed to drop below the 200
day EMA (blue line), but it did not reach the 55 day EMA (purple line). The
USD/CAD has been in a good bullish trend from the low that it made at the
1.2060 level, even though oil has been rallying and it should have supported
the Canadian Dollar. Normally, the 200 period EMA acts as a good support or
resistance zone and that is why if the USD/CAD reaches that moving average, it
may try to bounce to the downside from there. However, the USD/CAD may also try
to break above the 200 day EMA and maybe go and visit the 1.3000 level which
could act as resistance.
Ranging as it waits for the US tax bill reform to pass.
ReplyDeleteVery interesting! Thanks!
ReplyDeleteGood post.
ReplyDeleteGreat article as always.
ReplyDeleteIt bounced off from 1.2825.
ReplyDeleteInsightful analysis as always.
ReplyDeleteIt seems to have found some support.
ReplyDeleteGreat assessment!
ReplyDeleteImmediate resistance can be found at 1.2820.
ReplyDelete