Search ForexCrunch
  • USD/CAD pullback from multi-year lows capped by 200-HMA.
  • Buyers remain hopeful amid bullish RSI on 1H chart.
  • Focus on US stimulus news and Canadian Retail Sales.

USD/CAD consolidates its recovery from the multi-year troughs, as the bulls take a breather ahead of the Canadian Retail Sales release. Markets also await fresh updates on the US stimulus talks.

Technically, the spot has entered a consolidative mode after facing rejection at the horizontal 200-hourly moving average (HMA) of 1.2759.

The immediate downside, however, remains guarded by the 100-HMA, now aligned at 1.2737.

Further south, the confluence of the 21 and 50-HMAs around 1.2930 will challenge the bears’ commitment.

Alternatively, acceptance above the 200-HMA could call for a test of the 1.2800 level.

The hourly Relative Strength Index (RSI) sees an uptick near 58.33, suggesting that the road to recovery likely remains intact.

The path of least resistance appears to the upside after the major confirmed a descending triangle breakout on the hourly chart earlier in the Asian session this Friday.

USD/CAD: Hourly chart

USD/CAD: Additional levels