traded somewhat higher during the European morning Friday, after it hit support at the 1.3075 (S1) support barrier. The price structure on the 4-hour chart suggests a short-term uptrend. This combined with the fact that the rate is trading above the psychological zone of 1.3000 (S2) increases the likelihood for further advances. I would expect the bulls to challenge the 1.3185 (R1) resistance zone in the near future, where an upside break could set the stage for extensions towards the next obstacle of 1.3285 (R2), defined by the peaks of the 24th and 25th of March. Our short-term oscillators support somewhat the case for USD/CAD to trade higher for a while. The RSI turned up and could move again above 70 soon, while the MACD, already positive, shows signs that it could rebound from near its trigger line. Nevertheless, today we get Canada’s CPI data, where an acceleration could force the pair lower, but I would treat such a reaction as a temporary pullback before the next leg higher. Switching to the daily chart, I see that the rate is still trading below the longer-term uptrend line taken from the lows of June 2014. Therefore, the short-term uptrend still looks like a corrective move of the prevailing 20th Jan. – 3rd Mar. tumble. In my view, a close above the 1.3400 (R3) territory is the move that could turn the medium-term outlook back positive.
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