Canadian dollar, USD / CAD, CAD / JPY, EUR / CAD, GBP / CAD – technical analysis
USD / CAD analysis
The Canadian dollar may increasingly risk a depreciation of the dollar US dollar. USD/ CAD is closed above the resistance zone of key 1.2748 – 1.2808, marking the highest point since February. However, there is no confirmation and a negative difference in RSI exists. The latter indicates that the reverse momentum is fading, which can sometimes precede a lower turn. On the other hand, the bullish crossover offers an upward tilt between the 50- and 100-day moving moving averages, focusing on the January high and beyond.
CAD / JPY analysis
Cart Head and shoulders may be on the verge of playing in CAD /JPY. The Canadian dollar recently pushed the resistance zone back from 87.97 to 88.30, falling to the collar of the chart pattern after the right shoulder was introduced. The interruption below the support zone 85.41 – 85.82 with the fastener may open the door to the pair to extend the losses towards the expected target of the head and shoulders – see diagram below. However, the 200-day SMA remains a game that could restore the dominant upward focus.
AUD / CAD analysis
The Canadian dollar appears to be in a better position than the Australian dollar. AUD / CAD has been on a dominant downward trend since February, driven by lower resilience – see table below. Prices have recently taken out the central reference zone of 0.9294-0.9248 and have since established a new range of 0.9120-0.9146. There is a positive RSI difference that can precede a turn higher. However, even a rupture in excess of resistance reveals a 100-day SEA. The latter may restore the dominant negative focus.
EUR / CAD analysis
Canadian dollar position Euro seems relatively more neutral. EUR / CAD has remained above the declining resilience since the end of last year, but has recently sought to set higher levels. That is where the focus can be on the 200-day SMA. Watch this line closely as prices try to rise again. A rupture above the SMA could open the door to a few higher turns, reversing losses from the beginning of this year. Continuing the downward trend means closing below the 1.4631 – 1.4583 support zone.
– Written by Daniel Dubrovsky, Strategist For DailyFX.com
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