Today our eyes move to North America as we would focus our analysis on the USD/CAD currency pair.
The pair suffered some serious decreases over the past week, but the rates managed to fix themselves above the level at 1.24. At this point we could talk about a potential movement in the opposite direction. If that indeed happens we could see the USD/CAD pair back on the rise, likely flirting with the levels of 1.28-1.29.
However, if we narrow down our discussion to just the short-term prospects of the pair, then we would likely continue to see a bearish tendency. The key level of 1.24 mentioned above acts as a support for the pair, with the level of 1.2575 providing significant resistance for the price. Until either one of these is broken, not much can be said about the beginning of a new trend.
Nevertheless, upon a closer inspection of some oscillators we can see that there are some hints at a more bullish approach. Still, on the chart the USD/CAD prices confidently persist in a bearish manner, so we still cannot talk about a trend reversal with any degree of certainty, unless we see a daily close which is above the pivot at 1.2530. In this case we can set our target to 1.28.
As of the moment of this article’s publication the USD/CAD currency pair is trading around 1.2479 and most technical indicators agree on a sell signal.
