USD/CAD returns south

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 66% 68% -3.03%
Shorts 34% 32% 5.88%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Sell Sell
RSI (14) Neutral Buy Buy
Stochastic (5; 3; 3) Sell Sell Neutral
Alligator (13; 8; 5) Neutral Sell Sell
SAR (0.02; 0.2) Sell Sell Sell
Aggregate

USD/CAD was trading in a narrow range on Thursday morning. The situation changed mid-session when the positive impact of the US CPI data at 1230GMT initiated a buying spree for bulls. As a result, the rate was pushed above a significant resistance cluster formed by the monthly S2, the weekly PP, the 200-hour SMA and the 23.6% Fibo. 

This upside momentum, however, was short-lived, as the rate fell below the pressure of the aforementioned resistance and returned at the lower channel boundary. Technical indicators suggest that a further decline is likely. In case the US Dollar depreciates, no barriers are restricting this decrease until the 2.5-year low at 1.2067 is reached. 

Nevertheless, the Greenback could fall below the bottom channel line, but it should eventually re-test the 55– and 100-hour SMAs.

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