· USDCAD breaks below upward channel
· Will the 200-day SMA hold?
· RSI and stochastics confirm descending move
USDCAD plunged to a new two-month low of 1.4164 earlier today, continuing the strong selling interest that started from yesterday’s session. The pair holds well below the upward-sloping channel with the short-term simple moving averages (SMAs) ready for a bearish crossover.
In addition, the technical oscillators support the negative structure. The RSI is falling below 50, and the stochastic made a negative cross in the oversold area.|
Steeper decreases could see the bears testing the 50.0% Fibonacci retracement level of the upward wave from 1.3420 to 1.4792 at 1.4110. Even lower, the 1.3980 support as well as the 61.8% Fibonacci at 1.3950 may halt declines from reaching the 200-day SMA at 1.3875.
Conversely, a surge from the 1.4110 support could propel traders upwards, approaching the 1.4195 barrier before the 38.2% Fibonacci level of 1.4270. Another strong obstacle to the upside is coming from the 20- and 50-day SMAs at 1.4340 before resting at the penetrated uptrend line and the 23.6% Fibonacci at 1.4465.
To sum up, USDCAD is creating a bearish correction of the long-term upside tendency, and a break below the 200-day SMA could confirm a negative outlook.
· Will the 200-day SMA hold?
· RSI and stochastics confirm descending move
USDCAD plunged to a new two-month low of 1.4164 earlier today, continuing the strong selling interest that started from yesterday’s session. The pair holds well below the upward-sloping channel with the short-term simple moving averages (SMAs) ready for a bearish crossover.
In addition, the technical oscillators support the negative structure. The RSI is falling below 50, and the stochastic made a negative cross in the oversold area.|
Steeper decreases could see the bears testing the 50.0% Fibonacci retracement level of the upward wave from 1.3420 to 1.4792 at 1.4110. Even lower, the 1.3980 support as well as the 61.8% Fibonacci at 1.3950 may halt declines from reaching the 200-day SMA at 1.3875.
Conversely, a surge from the 1.4110 support could propel traders upwards, approaching the 1.4195 barrier before the 38.2% Fibonacci level of 1.4270. Another strong obstacle to the upside is coming from the 20- and 50-day SMAs at 1.4340 before resting at the penetrated uptrend line and the 23.6% Fibonacci at 1.4465.
To sum up, USDCAD is creating a bearish correction of the long-term upside tendency, and a break below the 200-day SMA could confirm a negative outlook.