- The USD / CAD retains gains from the previous day’s recovery from 1.3990.
- A 21-day SMA confluence, the corner’s resistance line falling in the short term becomes key.
- Support from the upside formation, 61.8% of the Fibonacci retracement can limit the decline in the short term.
The USD / CAD posted gains of 0.12% to 1.4030 as it headed for the European session on Thursday. In doing so, the pair is intensifying yesterday’s recovery moves towards the key bullish barrier comprising the upper line of a bullish technical model and the 21-day SMA.
Before the confluence of resistance at 1.4160 / 65, the Fibonacci retracement level at 38.2% from February to March, around 1.4100, can verify buyers.
However, an upward break of 1.4165 on the daily chart will confirm the uptrend and propel the quote to the previous month’s high around 1.4670. However, a 23.6% Fibonacci retracement near 1.4320 may provide an intermediate stop during the upside.
On the other hand, 50% of the Fibonacci retracement, close to 1.3930, can serve as immediate support in front of the lower line of said model around 1.3875.
While the breakout of the pair below 1.3875 defies bullish formation, a Fibonacci retracement of 61.8% near 1.3750 can challenge sellers.
USD / CAD daily chart
Trend: continuation of the expected recovery