USDCAD Breaks Through Descending Triangle Barrier

The USD/CAD has made a significant move by breaking above the descending triangle and surpassing the 1.3520 resistance level.

However, the RSI indicator is moving sideways above the neutral threshold of 50, indicating a lack of clear momentum. Additionally, the MACD oscillator is moving slightly higher above its trigger and zero lines, but with weak momentum.

Looking at the 20- and 50-day simple moving averages (SMAs), there is potential for a bullish crossover in the next few sessions. Traders should keep a close eye on these indicators to gauge the strength of the USD/CAD’s upward momentum and potential future movements.

In summary, the recent breakout above the descending triangle suggests a bullish outlook for the USD/CAD, but traders should remain vigilant and monitor the RSI, MACD, and moving averages for any signs of weakness or potential trend reversal.

Video source: XM Group

The USD/CAD pair is currently showing signs of positive momentum, with the potential for a breakout to the upside. If the pair manages to strengthen its momentum, the next resistance level could be around the 1.3700 psychological mark. A break higher from there may lead to a challenge of the 1.3800 handles, which could be a significant milestone for the currency pair. The peak of 1.3975 achieved in October 2022 may also be within reach if the positive momentum continues. Stay updated on the latest developments of the USD/CAD pair and potential breakout opportunities.

USDCAD is currently displaying positive signs with prices breaking above the symmetrical triangle. However, it is important to note that a failure to remain above this level may result in a shift back to the downside. In such a scenario, the 50-day SMA at 1.3465 and the 20-day SMA at 1.3420 would come into focus, with a drop below these lines signaling the resumption of the medium-term downtrend that has been developing since October 2022. The next key support to watch lower down is the 200-day SMA at 1.3260.

Overall, USDCAD’s outlook appears positive, but a drop below the short-term SMAs could switch the outlook back to a strongly bearish one. Stay informed and keep an eye on the market to make informed trading decisions.