USD/CAD Technical Analysis: February 16, 2017
The USDCAD is in the red in spite of the renewed buying interest in the US dollar following the statements made by Janet Yellen. The predictions about the rate hike in March stimulated the market sentiment. According to the Fed Chair, the hike will implement sooner in order to tighten monetary policy. Jeffrey Lacker, President of Fed Reserve Bank, suggested that the Chairwoman have the power to carry out 3 rate increases in 2017.
The price preserved a bearish sentiment on Wednesday. The bullishness of the greenbacks was short-lived making the pair to loosened their grip into their recent gains. The USDCAD trade in a narrow range amid European hours and hovered on top of range-bound.
According to the 4-hour chart, the price tested the 50 and 100-EMAs. Moreover, the 50-EMA exhibited an upward crossover to the 100-EMA. The 100 and 200-EMAs moved southwards while 50-EMA headed upwards. Resistance is found at 1.3120, support is seen at 1.3050
The MACD is bearish sitting in the negative zone. The RSI settled around the neutral territory.
Furthermore, the bullish pressure is expected to revive. As the commodity-linked pair reaches the top of 1.3120 resistance region, we expect to see an uptrend. The next target is 1.3190 mark.
|