June 27 , 2018
In the starting of this month when pair was hovering near 1.3066 level we have mentioned that it’s an acid test for bulls as it was trading at previous swing’s high which was a strong supply zone and can be considered as make or break level. Eventually it has given us valid bullish breakout on the daily technical chart and presently pair is trading above that level which is a clear indication of further bullishness.
An uptrend line is also lying on the daily chart which is pushing the bulls towards upside and favoring the bulls.The pair has become the sky rocket as bulls have taken the charge and dominating the bears at every nook and corner. The pair has direct relationship with crude oil as we know that crude oil is also moving towards north side aggresively so the same expections are with this pair also.
On the release front, there are no Canadian events until Thursday, so U.S indicators will have an added impact on the movement of USD/CAD. In the U.S, the key event is CB Consumer Confidence, which is expected to drop to 127.6 points. On Wednesday, the U.S releases durable goods reports.
Presently pair is trading above all the major and minor moving averages and heading north side. Odds are in favor of bulls and we will keep our bias bullish on the pair as long as 1.2750 level remains intact. However, some profit booking can’t be ruled out as it should be considered as second opportunity to accumplate the pair for those who have missed earlier.
A clear bullish breakout on MACD indicator is also favoring the bulls and generating bullish signal. RSI is also supporting the bulls from the positive territory. The 1.3400 level could be seen as immediate resistance level followed by 1.3450 level whereas 1.3250 level is strong key support level followed by 1.3200.
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