FxNews—The American dollar trades in a bull market against the Canadian currency, above the 1.398 key support level. As of this writing, USD/CAD trades at approximately 1.406, stabilizing above the %50 Fibonacci level, poising for a new bull run.
Technicals Favor Dollar’s Bullish Continuation
As for the technical indicators, the USD/CAD’s primary trend should be considered bullish because the prices are above the 50-period simple moving average. The Awesome Oscillator histogram is green and above the signal line, indicating the bull market should prevail.
However, the Stochastic Oscillator is near the overbought territory, depicting 75 in the description, meaning the Greenback could become overbought soon.
Overall, the technical indicators suggest the primary trend is bullish and should resume after a minor consolidation.
- Also read: AUDUSD Bearish Trend Resumed from $0.653
USDCAD Eying 1.412 After a Minor Consolidation
The USD/CAD’s bull market remains valid as long as the currency pair trades above the 1.398 mark or the 100-period SMA. That said, the immediate resistance is at 1.408, the 61.8% Fibonacci. From a technical standpoint, the uptrend will likely resume if USD/CAD exceeds this mark.
In this scenario, the next bullish target could be the 78.6% Fibonacci.
