USDCAD is rising somewhat in the short-term, hovering within the Ichimoku cloud and the 20- and 40-day simple moving average (SMAs). Regarding the technical indicators, the RSI indicator is pointing slightly upwards in the positive region, while the MACD is flattening around the zero level, suggesting the weak momentum on price.
If the pair overcomes the 40-day SMA, the next stop could be at the 1.2800 psychological level before the rally finds strong resistance at the 14-month high of 1.2960.
On the flip side, in case of downside corrections, immediate support could come from the 20-day SMA at 1.2615. Also, the 200-day SMA at 1.2510 could attract traders’ attention, which is standing around the ascending trend line. A dive below this crucial line may shift the positive outlook to neutral.
Overall, USDCAD is in a positive bias in the short- and the long-term outlooks. Any movement beneath the 200-day SMA and the uptrend line could change this view.
