Thursday 22 March 2018

USD/CAD Rebounded from the post-FOMC lows


USD/CAD suffered huge drop yesterday because of the main markets’driver - the Fed's rate hike. The pair extended its downward slope to mark an intraday low at 1.2825 but it seems that markets already digested the news and the US dollar started to recover. And this combined with weaker oil prices that weigh on the Canadian dollar pushed the pair back above 1.2900.
On the four hour time frame the price has is developing below the bearish 20-day SMA and slow bearish 200-day SMA. RSI and stochastic have retreated from their extreme oversold readings and both are showing strong upward momentum.
Currently the pair is trading at 1.2905 but according to indicators has potential to move higher. First target comes at 1.2925 – 1.2935 – 50% Fibonacci retracement of latest 2017 bearish run and also flat 100-SMA. Further on bulls should aim 1.2950 – 1.2960 are and with a break to the upside doors are opened for testing the psychological 1.3000 hurdle.
The downside is supported by 1.2825 (the daily low) and lower at 1.2800 (last week’s bottom).


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