USDCAD posted a triple top around the 18-month high of 1.2960, failing to create a higher high to continue the buying interest. However, the MACD oscillator surpassed its trigger and zero lines, while the RSI is sloping upwards in the positive region. Both are suggesting that the structure is still bullish in the near-term.
In the positive scenario, traders would be eagerly looking for a break above the recent top of 1.2960 to increase buying orders. If that’s the case, the rally could last until 1.3175, the highest level marked in November 2020. If bullish forces appear even stronger, 1.3385 should be another resistance to keep in mind.
Should the price retreat, the 20-day simple moving average (SMA) which the bears were unable to break over the last month could provide immediate support. Moving lower, the focus will shift to the 1.2820 restrictive area, which overlaps with the 40-day SMA, while lower still, a violation of the 200-day SMA at 1.2685 would increase speculation that the bullish phase has ended, and a downtrend is in progress.
Summarizing, the recent bullish action may turn the biggest picture more positive if the market overcomes the triple top pattern.
