USD/CAD Seems To Return To Gains; Nearby Resistance Eyed For Confirmation
2022.10.07 13:06
is gaining sustainable ground, finding support at the 1.3505 barrier.
The 20- and 50-day simple moving averages (SMAs) are following the upward movement; however, the technical oscillators are weakening their momentum. The MACD is standing beneath its trigger line in the positive area, while the RSI is flattening above the neutral threshold of 50.
Traders would be more eager to engage in buying activities if the price manages to surpass the nearby resistance at 1.3840, where the 29-month high is placed. If this is successfully breached, then the rally may next rest somewhere near the 1.4170 resistance, taken from the highs in March 2020.
On the flipside, the selling pressure could accelerate if the market deteriorates below the 1.3505 former strong support area, which stands near the 20-day SMA. Such a move could next bring the 1.3420 barrier under the spotlight, which if violated could trigger sharper losses probably towards the 1.3225 line.
In the long-term timeframe, the pair is in a bullish trend and only a move beneath the 200-day SMA would put the market in a sideways path.
