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USD/CAD Bullish Above 55 Day Moving Average

Published 03/31/2015, 02:37 AM
Updated 05/01/2024, 03:15 AM

USD/CAD continues to rise for a third day but the short term trend is neutral as the pair has been consolidating between 1.2350 and 1.2834.

USD/CAD failed to close below the 55 - day moving average so this is a bullish sign. There is scope to retest the upper range and a break of the 1.2834 high would confirm the underlying long term bullish trend and open the path towards 1.3063 (March 2009 high).

To the downside, the 55-day moving average is expected to provide support but a break below it would see the market move back to test the lower range. A decisive break of 1.2350 would be a concerning development as it would then indicate a much more aggressive pullback and we could see a trend reversal. For the moment this is not the case, as the RSI is above 50 in bullish territory and the 55-day moving average is rising.

USD/CAD Daily Chart

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