Home USD/CAD: Bullish Engulfing to 1.24 Neckline – SocGen
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USD/CAD: Bullish Engulfing to 1.24 Neckline – SocGen

The US dollar made a nice comeback and is  enjoying an extended rebound. The Canadian dollar remains on the back foot in this environment.

The  team at SocGen explains with a  chart:

Here is their view, courtesy of eFXnews:

A  recovery in the USD Index has materialized this week and the index is now testing previous lows around 96.00, which coincides with the previous down sloping channel, notes SocGen.

A break above will signal an extended rebound towards highs formed late April at 98.40,” SocGen adds.

USDCAD technical analysis May 25 2015 SocGen Canadian dollar USD Index

Turning into USD/CAD, SocGen that it’s most likely forming a bullish engulfing as the weekly close is mostly positive.

“Weekly RSI is inching higher from the graphical level of 50% highlighting 1.20/1.1970 as an important level.The ongoing rebound is likely to continue towards the neckline of the H&S pattern at 1.24. A sustained move above will stretch the recovery further,” SocGen projects

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.