USDCAD maintains the bullish bias in the short term after bouncing from 1.2762 on August 18. Prices rose to a high of 1.3144 on Wednesday but have found resistance in this area.The market is also currently at an important psychological level at 1.3100, which is just below the 23.6% Fibonacci retracement level (1.3112) of the upleg from 1.2653 to 1.3252. (June 8 – July 27 rise). These levels act as barriers to the upside.The market’s upside momentum was quite strong but has now fizzled out, as the RSI has now flattened out but remains in bullish territory above 50. This suggests there could be some consolidation in the market in the near term before resuming the rise, with scope to target the July high of 1.3252.
To retain bullishness, the market should remain above the 50-day moving average which is near the 38.2% Fibonacci level at 1.3023. This is an meditate support area for downside moves.
Origin: XM
