Categories: Technical analysis

USDCAD confirm bullish sentiment for the dollar

The USDCAD rallied strongly earlier in the week on a decline towards the cross of the 50- and 200-day moving averages. The sharp jump of 1.2% to 1.2700 should be taken as a signal that investors in North America remain bullish on the USD despite short-term risks from the Bank of Canada rate meeting.

There is a “golden cross” in the USDCAD when the 50 SMA crosses the 200 SMA from the bottom to the top. In June, the pair sharply broke the resistance of the 50-day moving average and turned into support, which was confirmed in the previous week.

The 200 SMA is a bigger calibre weapon, and it acts as a long-term trend indicator. This month we are seeing more signs that this line is moving into support from resistance as well.

A bullish picture for the USDCAD opens the pair to the 1.3000 area, an important round level, plus the 2019 support and the 61.8% pullback of the pair’s March 2020 to June 2021 peaks are concentrated here.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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