Range Markets

  • USD/CAD struggles to trim early-day losses from two-week high.
  • MACD keeps buyers hopeful but a clear break of 50-day SMA, four-old-month resistance line become necessary.
  • Horizontal line from late-January adds filters to the downside.

Despite gradual recovery moves from 1.2687, USD/CAD remains 0.20% down, currently around 1.2705, during early Monday. In doing so, the quote keeps pullback from a convergence of 50-day SMA and a descending resistance line from October 29.

It should, however, be noted that the MACD is recalling the buyers and hence the corrective pullback may again target the 1.2730 resistance confluence.

In a case where the USD/CAD buyers manage to cross 1.2730, a downward sloping trend line from December 21, 2020, near 1.2825 will be the key to watch.

Meanwhile, failures to extend the corrective pullback beyond 1.2730 can keep USD/CAD directed towards a five-week-long horizontal area close to 1.2580.

Moreover, USD/CAD weakness below 1.2580 will not hesitate to refresh the yearly bottom surrounding 1.2470.


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