Loading...
Traders Beware!
Warning!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

USD/CAD Keeps Trading Sideways

USD/CAD traded somewhat higher on Thursday, after it hit support slightly above the 1.3490 key barrier. That hurdle appears to be the lower end of a sideways range that’s been containing most of the price action since June 11th, with the upper bound being at 1.3630. As long as the pair continues to trade in between those two boundaries, we would consider the short-term outlook to be flat.

Despite yesterday’s decent slide, in order to get confident on more bearish extensions, we would like to see a strong break below 1.3490. This move would confirm a forthcoming lower low and may initially pave the way towards the inside swing high of June 10th, at around 1.3437. If the bears are not willing to stop there, then a break lower could trigger extensions towards the 1.3355 area, marked by the lows of June 8th and 9th.

Shifting attention to our short-term oscillators, we see that the RSI rebounded from near its 30 line, while the MACD, although below both its zero and trigger lines, shows signs that it could also start bottoming. These indicators detect slowing downside speed and suggest that some further recovery, within the range, may be possible before, and if, traders decide to attempt an exit.

That said, we would start examining the bullish case, only if we see the rate breaking above 1.3630. Such a move could encourage advances towards the high of June 30th, at 1.3700, the break of which may allow the bulls to put the 1.3800 zone on their radars. That zone provided strong resistance back on May 31st.

USD/CAD 4-hour chart technical analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT

MORE MARKET INSIGHTS