The USD/CAD pair trades in a robust bull market, above the 75-period simple moving average. The recent surge in the currency pair’s price caused the Stochastic Oscillator to step into overbought territory, depicting 88 in the description.
As of this writing, the currency pair trades at approximately 1.413, pulling back from the November highs.
USDCAD Technical Analysis – 9-December-2024
The immediate resistance is at 1.417, the November 24 high. From a technical perspective, the USD/CAD uptrend will likely extend if bulls (buyers) close and stabilize above this resistance.
In this scenario, the next bullish target could be the 1.442 mark.
The Bearish Scenario
Please note that the bullish outlook should be invalidated if USD/CAD dips below the immediate resistance at 1.411.
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A new consolidation phase could be formed if this scenario unfolds, targeting the 38.2% Fibonacci retracement level at 1.408.