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USDCAD tries to keep the battle going with the 200-day SMA
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Momentum oscillators indicate more upside moves
USDCAD advanced considerably on Friday, meeting the 200-simple moving average (SMA), slightly beneath the 1.3600 round number. A successful rally above the aforementioned level could add some optimism for more bullish actions, hitting the 50-day SMA at 1.3665, while even higher, the 1.3790 barrier may pause the ascending move.
Conversely, a drop back to the downside could endorse the negative scenario, retreating to the 1.3420-1.3440 support area. Below that, the 1.3360 obstacle, taken from the lows in February 2022, is the next target for traders to have in mind.
According to technical oscillators, the stochastic oscillator is heading upwards after the bullish cross within its %K and %D lines, and the MACD is extending its upside movement above its trigger line in the bearish zone.
To summarize, USDCAD is still in a bearish mode because it is still developing beneath the 200-day SMA, but the momentum oscillators indicate a potential upside retracement.
