USD/CAD stays on the front foot for the second consecutive day, refreshing intraday high around 1.2970 during Thursday’s Asian session.
In doing so, the Loonie pair extends the previous day’s rebound from the 50-SMA towards a one-week-old descending resistance line.
However, a horizontal area comprising multiple levels marked since the previous Wednesday joins the bearish MACD signals to challenge the pair’s upside around 1.3000 psychological magnet.
Should the quote rises past 1.3000, the double tops around the monthly peak of 1.3078 will be crucial to watch.
Meanwhile, the 50-SMA and a weekly support line restrict immediate pullbacks of the USD/CAD pair, respectively near 1.2940 and 1.2925.
In a case where USD/CAD breaks the 1.2925 support, the bears could aim for the multiple lows marked during mid-June surrounding 1.2860.
It’s worth noting, however, that the pair’s weakness past 1.2860 will make it vulnerable to decline further towards the monthly low of 1.2517.
To sum up, USD/CAD is likely to extend the latest recovery but the upside room is limited.
Trend: Limited upside expected
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.