USDCAD Technical Analysis – 20 24 May – Weekly Update – USD CAD Outlook
- Our last technical update noted that the USD/CAD currency pair had found support at the convergence of technical support around parity. This was comprised of the following technical elements.
- Ascending trendline support, which had initiated from the 2012 low.
- The 200-day SMA (simple moving average).
- The midpoint of the last key swing higher from September (the 50% retracement area).
- This was followed by a bullish engulfing candle near the key round number area. Price has subsequently moved around 200 pips higher since the last update to hit a high of 1.0311 on Friday.
- The upside move has been capped at the descending trend line area as per the daily/weekly time frame charts below.
- Price action around this prior supply zone circa 1.0290 – 1.0330 is seen as key in the near term to gain a directional bias on the “Loonie”.