USDCAD posts bearish cross within SMAs; next support at 1.3400
2023.04.12 05:32
is plunging towards the long-term uptrend line that may act as a turning point for traders. The 20- and the 50-day simple moving averages (SMAs) are ready to post a bearish crossover, confirming the recent bearish movement from the 1.3800 psychological mark. The RSI indicator is moving sideways beneath the 50 level, while the MACD is moving below its trigger and zero lines.
Any more losses could drive the market towards the immediate support of 1.3400, which overlaps with the 200-day SMA. If the bears send the price below these key levels, then they may switch the outlook to bearish, meeting the 1.3225-1.3260 support region.
Otherwise, any attempts to the upside may find strong resistance at the short-term SMAs currently at 1.3580 before testing the 1.3640 barrier. Above that, the 1.3800 psychological mark and the medium-term downtrend line around 1.3830 may halt bullish actions.
Summarizing, USDCAD is still standing within a triangle and only an advance above 1.3860 or below 1.3400 may decide the next directional movement.
