- USDCAD bounces off 1.3600 and 200-day SMA
- Momentum oscillators suggest more gains
USDCAD has been still developing within a trading range of 1.3600 and 1.3790 since April 17, with strong support at the 200-day simple moving average (SMA). The recent rebound from 1.3600 reflects the oscillators’ strengthening momentum.
According to technical oscillators, the stochastic oscillator is pointing upward in the overbought region, while the RSI is rising, crossing above the neutral threshold of 50.
More upside pressures could find resistance first at 1.3755, ahead of the upper boundary of the consolidation area at 1.3790. A break above this area could pave the way for further increases until the 1.3845 barrier, taken from the high of April 16.
Alternatively, a dive beneath the short-term SMAs could take the market towards the tough obstacle of 1.3600, which overlaps with the 200-day SMA. A successful tumble below these lines could endorse the negative scenario, meeting 1.3480.
Summarizing, USDCAD is moving sideways, and only moves above 1.3790 or below 1.3600 could show the next direction.
