USDCAD is confronting the 1.3346 to 1.3360 resistance zone after the pair commenced actions to shift the short-term bias to positive, by rocketing above the 200-period simple moving average (SMA) and the previous spikes that tried to pierce above it, in the beginning of September. The upward sloping Ichimoku lines are assisting the climb, while the rising 50- and 100-period SMAs and the fresh bullish crossover of the 200-period SMA may reinforce the ascent.
The short-term oscillators suggest improvements in momentum. The MACD, in the positive region, is increasing above its red signal line, while the RSI is attempting to thrust into overbought territory. However, the stochastics have confirmed a bearish tone, reflecting the price’s struggle with the near resistance section overhead. Nonetheless, the hike remains unbroken while the SMAs stay on their positive course.
If buying interest swells, immediate resistance may originate from the 1.3346 to 1.3360 buffer zone. Surpassing this obstacle, the price may jump to test the 1.3398 high and the neighbouring 1.3420 barrier. Gaining additional ground, buyers may encounter limitations towards the climb from the 1.3450 to 1.3459 region of tops, from the end of July and beginning of August.
If sellers manage to pivot the price, an early support section from 1.3270 until 1.3246, involving inside swing highs and the red Tenkan-sen line, may attempt to dismiss a pullback. Should it fail, the price may meet the 1.3210 barrier ahead of the bullish cross within the 50- and 200-period SMAs. Successfully slipping below the 200-period SMA, the 1.3170 key low and the Ichimoku cloud beneath could draw some focus. Adjacent to this, is the 100-period SMA at 1.3149 and the foundation of 1.3118 to 1.3136, which may attempt to impede the pair from recommencing a bearish direction.
Summarizing, the short-term positive structure seems intact above the SMAs and the 1.3270 boundary. Furthermore, a break above 1.3360 could repower the bullish bias.
Origin: XM
