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USDCAD meets strong resistance near 1.3800
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Momentum oscillators suggest bullish moves
USDCAD is flirting with the upper boundary of the short-term consolidation area of 1.3600–1.3790 ahead of the BoC interest rate decision later in the day. The strong rebound off the 200-day simple moving average (SMA) acted as a significant turning point, adding some optimism for further bullish actions.
The technical oscillators are confirming the latest move. The stochastic is rising in overbought territory, while the RSI is trying to cross above the 70 level.
If there are steeper increases, the price may head towards the previous peak of 1.3845, recorded on April 16. Even higher, a touch of the 1.3900 round number achieved in October 2023 could confirm the bullish tendency.
Alternatively, a move below 1.3755 could send traders until the 20- and 50-day SMAs at 1.3680 ahead of 1.3600, which overlaps with 200-day SMA. A successful drop below this restrictive region could change the neutral outlook to bearish, with the next support coming from 1.3480.
To sum up, USDCAD has been still developing within a trading range, but the recent bullish move indicates a potential positive tendency in the market.
