The USDCAD briefly trades above April 2020 excessive at 1.4264 however reverses

The USDCAD has moved decrease after failing to maintain a break increased earlier at present. Technically, the pair briefly pushed above the April 19, 2020 excessive at 1.4264, reaching a session excessive of 1.4270, however momentum rapidly pale. The value rotated again beneath final week’s excessive at 1.4244 (Friday) and prolonged to a corrective low of 1.4222 earlier than bouncing again increased.

The pair is now retesting Friday’s excessive at 1.4244—a vital stage the place sellers have to step in to cap the upside and try and regain management. The chance for sellers stays restricted at this stage, however the query is whether or not they can generate sufficient momentum to push the pair decrease.

If sellers succeed, the subsequent key draw back goal is available in on the 1.4194 to 1.4200 zone. A break beneath this space would additional strengthen vendor confidence and sign a shift in management.

Adam in his put up, paints the political turmoil doubtlessly resulting in a RISE within the CAD (decrease USDCAD). See his put up right here…

Adam wrote:

I are inclined to suppose it is all upside dangers for the Canadian greenback right here (draw back for USD/CAD) as a result of if an election known as, the end result is a foregone conclusion and the market want to see some change.

Technically, the very best case can be to carry right here close to the 1.4244 stage. A extra conservative technical ceiling woulld be to remain beneath 1.4264.

This text was written by Emma Wang at www.ubaidahsan.com.



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