CANADIAN DOLLAR OUTLOOK:
- USD/CAD extends losses amid optimistic market sentiment
- Larger oil costs additionally profit the Canadian greenback
- The pair appears to be on the verge of invalidating a key technical help zone, a bearish sign for worth motion
Beneficial by Diego Colman
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Most Learn: EUR/USD Confronts Trendline Resistance, Threatens Breakout After Sizzling German CPI
The Canadian greenback, colloquially often known as the loonie by foreign exchange merchants, continued to understand on Thursday, supported by widespread U.S. greenback weak spot, risk-on sentiment on Wall Road and rising oil costs, with USD/CAD retreating greater than 0.2% to 1.3530, the bottom change fee in per week.
After falling greater than 2.4% from the 2023 highs reached on March 10, the pair is at the moment sitting above an necessary technical help zone positioned close to the psychological 1.3500 stage and the 50-day easy transferring common, as seen on the day by day chart under. Merchants ought to maintain a detailed eye on the pair’s habits on this space for clues on the near-term path.
For bearish conviction to strengthen, USD/CAD should break under 1.3500 decisively on day by day closing costs. With international market sentiment on the mend, this situation may unfold briefly order, paving the way in which for a drop in direction of trendline help at 1.3420. On additional weak spot, the main focus shifts to the 200-day easy transferring common, adopted by 1.3220.
Conversely, if bulls handle to wrestle short-term management and drive costs increased, preliminary resistance might be seen at 1.3700, a barrier that has halted upside momentum in its tracks on quite a few events in December 2022 and January this yr. Within the occasion of a bullish breakout, a retest of the March swing excessive can’t be dominated out.
Beneficial by Diego Colman
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