The USD/CAD pair made some miraculous movement upside after the US data release on Wednesday. However, the surge was unable to hold due to the weakness of the US Dollar.
After hitting the 50.00% Fibonacci retracement level, the exchange rate has been gradually moving upwards, although this movement might be strengthened by the monthly PP at 1.2496. This retracement can be measured with the low at 1.2254 and the high at 1.2689.
Everything being equal, the currency pair could remain relatively calm during the following trading session.
After hitting the 50.00% Fibonacci retracement level, the exchange rate has been gradually moving upwards, although this movement might be strengthened by the monthly PP at 1.2496. This retracement can be measured with the low at 1.2254 and the high at 1.2689.
Everything being equal, the currency pair could remain relatively calm during the following trading session.
As shown on the chart, the currency exchange rate formed a flag. The 200—hour simple moving average is restricting USD/CAD from making further gains.
As for near future, traders should look for opportunities to trade in either direction once there is a breakout from the SMAs. In addition, technical indicators suggest that the currency pair could breach the resistance at 1.2556.