The grennback’s strength is vanishing and today is down
against its major rivals. Meanwhile it has still outperformed the Canadian
dollar. The USD/CAD pair is moving higher this week and as seen on the four
hour time frame tested the resistance provided by the 50% Fibonacci retracement
of latest bullish run at 1.2485. The price is now developing between turning to
the upside 20-day SMA and yet bearish 100-day and 200-day SMAs. Stochastic is
located within extreme overbought area, but yet is aiming north. RSI is seen
slightly above its mid-line and has lost directional strength.
Adding to this picture the failure of Loonie to track the surging oil prices,
the conclusion comes to unsustainable belief on oil’s further rally. And in
this case the USD/CAD pair is quite undecided and hesitant.
Technically speaking the pair should break to above the 1.2050 – 1.2515
resistance area in order to bring back bulls in the game.
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