USD/CAD Eyes Fib Resistance as Bulls Regain Upper Hand



  • USD/CAD begins the week on a optimistic notice, although positive aspects are restricted
  • Despite subdued value motion on Monday, technical alerts proceed to enhance for the U.S. greenback
  • This article appears to be like at key tech ranges value watching on USD/CAD within the coming days

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The U.S. greenback strengthened in opposition to the Canadian greenback on Monday, however its advance was restricted in a session devoid of main catalysts, with the pair shifting between small positive aspects and losses for a lot of the day, earlier than resolving modestly greater in direction of the shut in New York. When it was all mentioned and accomplished, USD/CAD climbed 0.05% to 1.3540, rising for the final six of the earlier seven days, an indication that patrons could have regained the higher hand within the FX area.

Despite subdued strikes initially of the week, technical alerts have turned extra optimistic for USD/CAD, particularly since earlier this month when the bulls efficiently defended trendline help at 1.3300, an occasion that led to a powerful rally. The buying and selling bias has additional improved in latest days after the change charge regained its 200-day easy shifting common and moved atop a key ascending trendline in play for 10 months.

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With bullish inertia on its aspect, USD/CAD may prolong its restoration within the coming days and defy resistance at 1.3570/1.3580, an space the place the 50-day easy shifting common converges with the 50% Fibonacci retracement of the March/April hunch. The pair could wrestle to breach this barrier, but when a breakout materializes, a rally towards trendline resistance at 1.3650 may observe.

On the opposite hand, if sellers return and set off a pullback, preliminary help stretches from 1.3515 to 1.3485. A decisive break beneath this ground may embolden bears to launch an assault on the 200-day easy shifting common, situated barely above the psychological 1.3400 mark. In the occasion of extra weak point, consideration would shift south in direction of this 12 months’s low at 1.3302.

of purchasers are internet lengthy.

of purchasers are internet quick.

Change in Longs Shorts OI
Daily 5% 19% 14%
Weekly -36% 114% 18%


USD/CAD Chart Prepared Using TradingView

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