The USDCAD pushed higher throughout the month of October to reach a two-year high, but has pared gains over the last two weeks, and may offer profitable opportunities for forex traders.
Currency Pair: USD/CAD Chart: 60 Min Charts Short-Term Bias: Bullish
Analysis Update
Over the last few hours of trading, the USDCAD slid above the 38.2% Fib retracement level to reach a high of 1.2150, but the lack of momentum to hold above the state level suggests that the pair will move to the downside over the remainder of the trading session. The divergence from the 120 SMA suggests that the pair may cross below the 50.0% Fib level over the next day or so, but the lack of risk appetite continues to favor a bullish outlook for the USDCAD, and we may see the pair work its way back up towards the 10/31 high of 1.2380 over the next few days. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
The USDCAD pushed higher throughout the month of October to reach a two-year high, but has pared gains over the last two weeks, and may offer profitable opportunities for forex traders. After reaching a high of 1.3020 on 10/28, the pair pulled back to find support near 1.1488 (61.8% Fib level), but looks to be finding resistance near 1.2082 (38.2% Fib level). The divergence from the 120 SMA suggests that the pair may fall back to the downside over the 24 to 48 hours, but the lack of risk sentiment amongst investors continues to favor a bullish outlook for the pair over the near-term. Over the remainder of the trading session, we may see the pair cross below the 120 SMA, but I anticipate the pair to find support at the 61.8% Fib retracement level. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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