#USDCAD @ 1.37857 The 20-EMA at around 1.3080 has acted as major support for the counter. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• The 20-EMA at around 1.3080 has acted as major support for the counter.
• The dismal market mood is supporting the greenback bulls.
• The asset may test October high at 1.3978 after overstepping the round-level hurdle of 1.3900.

The pair currently trades last at 1.37857.

The previous day high was 1.3807 while the previous day low was 1.3651. The daily 38.2% Fib levels comes at 1.3711, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3747, expected to provide support.

The USD/CAD pair is attempting to re-test the critical hurdle of 1.3811 as the risk-off market mood has strengthened further. S&P500 futures have escalated their losses in Tokyo after two consecutive bearish trading sessions, which indicates that the risk aversion theme will stay for a while.

This has also infused fresh blood into the US dollar index (DXY), which has overstepped the round-level resistance of 113.00 in Asia. Also, the 10-year US treasury yields haven’t shown any sign of exhaustion despite a juggernaut rally to near 4.23%.

On a daily scale, the asset has remained in the grip of bulls after breaching the upward-sloping trendline placed from May 12 high at 1.3077. The formation of buying tails after a correction to near the 20-period Exponential Moving Average (EMA) at around 1.3680 indicates that the corrective move is concluded now and the asset will resume its upside journey.

Also, the upside trending 50-EMA at 1.3445 indicates that the upside bias is intact.

The Relative Strength Index (RSI) (14) tested 40.00-60.00 after remaining in the bullish range of 60.00-80.00. A conclusion of the corrective move may drive the momentum oscillator again into the bullish range.

Going forward, a break above Wednesday’s high at 1.3810 will send the asset toward the round-level cushion of 1.3900, followed by the previous week’s high at 1.3978.

On the contrary, a decisive drop by the asset below the round-level support of 1.3700 will drag the asset toward October 6 low at 1.3565. A breakdown of the latter will bring further weakness in the asset towards October 5 low at 1.3504.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3786 at the time of writing. Pair opened at 1.3765 and is trading with a change of 0.15 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3722, 50 SMA 1.3344, 100 SMA @ 1.3111 and 200 SMA @ 1.2905.

The previous day high was 1.3807 while the previous day low was 1.3651. The daily 38.2% Fib levels comes at 1.3711, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3747, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3675, 1.3585, 1.352
• Pivot resistance is noted at 1.3831, 1.3897, 1.3987

[/s2If]
Join Our Telegram Group