Usd/cad Price Analysis: 100-hma Defends Bulls Inside Nearby Trading Range Below 1.3000
- Trade Ideas
- 2022, 17 June
- USD/CAD grinds higher inside three-day-old trading range, stays above 100-HMA.
- Bullish RSI divergence, sustained trading above key HMA keep buyers hopeful.
- 200-HMA holds the key for seller’s entry, yearly top adds to the upside filters.
USD/CAD remains sidelined in a 110-pip trading range for the last three days, retreating to 1.2950 during early Friday morning in Europe.
However, the quote’s ability to stay beyond the 100-HMA joins the bullish RSI signals to underpin the hopes of further upside. That said, the higher low on the prices joins the higher low of the RSI to keep buyers hopeful.
The Loonie pair’s latest weakness again drags it towards the 100-HMA support, near 1.2910 by the press time, a break of which will can direct the bears to the stated trading range’s lower end, around 1.2860.
In a case where USD/CAD breaks the 1.2860 support, June 10 swing high near 1.2810 and the 200-HMA level surrounding 1.2765 will be crucial for bears to watch.
Meanwhile, 1.2975 and the 1.3000 psychological magnet guard short-term upside moves of the pair.
Also acting as the key hurdle is the previous monthly high of 1.3076, also the highest level since late 2020.
To sum up, USD/CAD is likely to extend the two-week uptrend but the road to the north is a bumpy one.
Buy above 1.2925 for 1.2995 and 1.3020
Sell below 1.2925 for 1.2905 and 1.2885