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MTrading Team • 2023-02-28

USDCAD bulls need to cross 1.3700 for confirmation

USDCAD bulls need to cross 1.3700 for confirmation

USDCAD bulls struggle to defend the two-week-old winning streak ahead of the Canadian GDP data. However, the Loonie pair stays beyond the fortnight-long support line, as well as the key moving averages, to keep buyers hopeful. That said, a horizontal area comprising multiple levels marked since early October 2022, around 1.3700 appears the key upside hurdle for the pair. Following that, a run-up towards the 1.3830 and the 1.3900 threshold could be quick. In a case where the quote remains firmer past 1.3900, the previous yearly top surrounding 1.3975 and the 1.4000 psychological magnet could challenge the upside momentum. It should be noted that the RSI appears overbought but the MACD remains bullish, which in turn highlights the incoming data.

Meanwhile, pullback moves may initially poke the immediate support line near 1.3580 before approaching the 100-DMA support of around 1.3500. In a case where the USDCAD remains weak past 1.3500, a gradual downturn toward the 200-DMA close to 1.3260 can’t be ruled out. However, the Loonie bears need a clear downside break of the stated key DMA support to retake control.

Overall, USDCAD remains on the bull’s but a pullback can’t be ruled out unless the price remains below 1.3700. That said, strong prints of Canadian GDP could trigger the much-needed retreat of the Loonie pair.

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