The USDCAD has made another decisive breakout above the big round number 1.2500 but the current bullish trend looks overextended. The current high established near the round number 1.2600 is a good candidate for resistance level. Only a daily break and close above 1.2600 can signal more bullish momentum. On the downside, the big psychological level is the line in the sand between the bulls and the bears.
A break and a daily close below the round number 1.2500 can open the door for a possible retest of the support level 1.3381. The stochastic indicator is moving away from oversold territory, which can support a pause in the bullish trend. Due to the holiday season there is no major risk events scheduled on the Canadian economic calendar. In this regard, we should expect the exchange rate to be more sensible to the technical levels.
Never miss out another good trading setup when you have this Powerful Price Action Scanner
Other Analysis Today