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  • USD/CAD is accumulating minor gains in the Asian session.
  • However, bulls remain on the defensive near the downward trend line.
  • Positive MACD tilts in favor of the upside momentum.

The USD/CAD pair extends the previous day’s gains from the lows of 1.2470 in the Asian trading session. However, the pair finds it hard to breach the 1.2550 key psychological mark.

At the time of writing, USD/CAD is trading at 1.2544, up 0.03% on the day.

USD/CAD four hourly chart

On the four hourly chart, the pair has been consolidating below the intraday’s highs of 1.2555. However, it seems that the USD/CAD bulls lack the conviction to pierce above the downward slope line extending from Tuesday’s high near the 1.2630 area.  

The price is comfortably placed above the 20-hour simple moving average (SMA) at 1.2545, which signifies the pair’s potential to rise above the threshold of 1.2560. On moving higher the hurdle for the prices emerges near the 1.2570 and the 1.2600 regions, both are horizontal resistance zones. Bulls would next lookout for Tuesday’s highs near 1.2630.

On the flip side, the Moving Average Convergence Divergence (MACD) indicator reads below the midline, signaling the risk of downside for the pair. If  the prices breach the 20-hour SMA, then it would locate its first stoppage near the 1.2520 horizontal support zone. Next, the bears could flex their muscles near to March 19 lows of 1.2460, and then towards horizontally placed support zone of 1.2435.

USD/CAD additional levels  

 

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