USDCAD rises above the 100 day MA

The USDCAD has damaged above its 100-day transferring common for the primary time since April, signaling a possible shift in pattern. The transferring common—presently at 1.38279—had been sloping steadily downward, reflecting the sustained bearish bias of latest months. Nevertheless, at this time’s breakout marks a key technical milestone.

The pair is presently buying and selling round 1.3835, having reached a session excessive of 1.3841. Whereas the 100-day MA continues to be declining, the truth that value has additionally damaged above a two-month consolidation vary strengthens the bullish case.

Quick help now is available in on the June excessive of 1.3797. Holding above this stage retains consumers in management and sustains the breakout narrative. A break again beneath would threat slipping again into the outdated vary and uninteresting near-term momentum.

On the topside, the subsequent key goal is the Might 29 excessive at 1.3859. A transfer above that might open the door towards a key swing zone between 1.3928 and 1.3978, outlined by a number of highs and lows (see crimson numbered circles on the chart).

Abstract of key ranges:

• Help: 1.3797 (June excessive, former vary prime)

• Preliminary resistance: 1.3859 (Might 29 excessive)

• Upside goal zone: 1.3928–1.3978

This text was written by Emma Wang at investinglive.com.