Tuesday, 21 March 2017

USD/CAD Exposed to show shift in momentum

USD/CAD declined this afternoon and had marked a fresh weekly low at 1.3261. The daily key market mover for the pair was the optimistic numbers delivered by the latest Canada's Retail Sales for January and well supported by the suffering greenback. 
After the initial drop the pair retreated and the current market price is 1.3337. As seen on the four-hour time frame the 20-day and 100-day SMAs has been crossed to below and are providing good resistances levels. Meanwhile RSI and stochastic are slightly below their mid-lines, but both indicating upward momentum.
The bounce today should be treated significantly only in the short-term since USD/CAD is facing strong resistance at 1.3380 area and while staying below this point, the momentum may continue to be interpreted as bearish.   



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