USD/CAD Stalking Current Rally Towards 1.06/1.0650
- Daily: The daily chart shows a scenario similar to that shown on Friday's Weekly Technical Update. The opening session is stalling the rally projected towards 1.0630 area. The RSI is still under 60, but can break above in the next couple of sessions if they are bullish. Let's take a look at the 1H chart to see if we have confirmation or price action suggesting otherwise.
- 1H: The 1H chart shows the market in a channel so far. Basically, it is consolidating after rallying from 1.0250 in the previous trading session. The resistance at 1.05 has brought the pair down slowly, compared to the sharp swing rallies.
- The MA crossed up for a bullish signal, and momentum can confirm if the RSI stays above 40.
- A break above 1.05 also spells a rally towards the 1.06/1.0650 area.
- Not shown here, but the 1.0350 area is the 61.8% retracement area and if the market breaks below that, the current bullish scenario is invalid.
Commodity Trading Advisor
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