The USDCAD could be on a reversal creation pattern in the recent trading sessions. The currency pair found support at 1.2346 and extended in sideways between 1.2595/1.2346 zone. As we can see at the lower timeframe there is a possible “failure swing” pattern. Prices found support at the 38.2% Fibonacci retracement, which coincides with the 20 Moving Average, that is strengthening the hurdle at 1.2346.
The Canadian dollar was previously on the weakening side due to falling Oil prices, however Oil prices are now recovering. Moreover, the recent data showed that Canadian employment was stronger than expected but in the US the jobs creation was more than anticipated as well.
Looking at the oscillators, the CCI is declining and recently breached from above the 100 line. The RSI (14) is also on a falling path suggesting bearish bias. In our opinion, we have a medium strength support at 1.2346 which is already limiting selling attempts, nevertheless should we see a penetration of that support then we would expect falling bias to strengthen and the next support at 1.2193 would be exposed. Alternatively, should the upside hurdle at 1.2595 is breached then prices could revisit the peak at 1.2798. Normal 0 false false false EN-US X-NONE X-NONE
The Canadian dollar was previously on the weakening side due to falling Oil prices, however Oil prices are now recovering. Moreover, the recent data showed that Canadian employment was stronger than expected but in the US the jobs creation was more than anticipated as well.
Looking at the oscillators, the CCI is declining and recently breached from above the 100 line. The RSI (14) is also on a falling path suggesting bearish bias. In our opinion, we have a medium strength support at 1.2346 which is already limiting selling attempts, nevertheless should we see a penetration of that support then we would expect falling bias to strengthen and the next support at 1.2193 would be exposed. Alternatively, should the upside hurdle at 1.2595 is breached then prices could revisit the peak at 1.2798. Normal 0 false false false EN-US X-NONE X-NONE
