USDCAD Following Short Term Trend

USDCAD is moving in a nice long term trend and after touching the bottom of the long term trend channel, it got up to take the correction and moved a bit above the downward channel. Now it seems to be snaking back into the downward trend but still an important 0.9670 level is acting as strong support and only once USDCAD manages to break that level, USDCAD can be thought of back into downward trend. Once USDCAD manages to break below 0.9670 level, the next target level will be around 0.9590 level. The other thing that is matching with the 0.9670 and 0.9590 levels are the long term and medium term moving averages which are currently below the trend.

On the upper side 0.9720 is an interesting level because the traders following USDCAD in selling trend might eye it as an important selling opportunity and the traders thinking otherwise or focusing on intra-day trends, they might look to target it for profit levels and buying USDCAD around 0.9670 level.

RSI is just above 56 in daily charts and don’t seems to play much part in indicating the direction of trend and it will support extended moves in both directions. Since the overall scenario is not much clear, the traders might focus on small trades with decent stops.

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