This pair has been cruising higher inside a rising channel with its higher lows and higher highs on the 1-hour chart.
The channel top seems to be holding as resistance, likely pushing
USD/CAD back to nearby support areas to gather more bullish energy.
Are buyers ready to hop in soon？
Using the Fib tool
shows that the 61.8% level lines up with the channel bottom to add to
its strength as a floor while the 50% level coincides with a former
resistance zone.
Stochastic
is suggesting that the correction could keep going for now, as the
oscillator has a bit of room to move south before reaching the oversold
region.
The moving averages
are hinting at a continuation of the uptrend, as the 100 SMA just
crossed above the 200 SMA. If any of the Fibs are able to keep losses in
check, USD/CAD could recover to the swing high and beyond!
Of course this might boil down to the upcoming catalysts, which
include CPI readings from Canada and the highly-anticipated FOMC meeting
minutes.
Cautious remarks from the U.S. central bank are already expected, so
any hawkish hints might be enough to send the dollar rallying. Also keep
in mind that risk-off flows stemming from geopolitical risks would
likely favor the safe-haven dollar.
Leave a Reply