The USDCAD currency pair continues to exhibit strong upward momentum, with the Canadian dollar showing little benefit from its national soccer team's historic World Cup performance. Despite Canada's advancement to the 'Sweet 16' for the first time, market sentiment for the Canadian dollar (loonie) against the US dollar remains subdued. The pair is currently trading near its session peak, with daily lows providing limited relief for sellers.
Since May 1, the USDCAD has experienced a significant ascent, climbing from approximately 1.35492 to a double-top high of 1.4247 observed last week. This sustained upward trajectory highlights the persistent strength of US dollar buyers in this pairing. Retail forex and CFD traders often monitor such trends for potential continuation or reversal signals, paying close attention to key technical levels that might indicate shifts in market dominance.
Technical Outlook for USDCAD
From a technical perspective, the double-top formation last week initially signaled an opportunity for sellers to exert downward pressure. This led to the pair dipping below its 100-hour moving average on Friday, a level it has largely remained beneath since. However, the more critical 200-hour moving average, currently positioned around 1.4169 and trending upwards, has yet to face a substantial challenge. The USDCAD has not closed below this longer-term moving average since May 29, underscoring the enduring bullish sentiment.
For sellers to regain control, a more decisive downside move would be necessary, particularly a convincing break and sustained trading below the rising 200-hour moving average. Until such a development occurs, the prevailing trend suggests buyers are likely to continue dictating the pair's direction, with any corrections potentially being short-lived.
📰 Based on reporting from: ForexLive →