USD/CAD not without a fight

FXStreet (Guatemala) - USD/CAD has made a u-turn making its biggest gains on the session since the start of the week and is not going down without a fight.

USD/CAD has moved back into bullish territory, relative on the past two sessions and has rallied up 60 pips on the 1.10 handle and lows on Friday.

USD/CAD targeting 40-day MA?

The USD sell-off this week proved to be longer and deeper than we expected. It’s a pretty safe assumption that the bull targets we outlined for the market last week as the USD pushed through major resistance points are unlikely to be reached in the sort of time-frame we had thought like then. But a quick recovery back through the 1.1100/50 range (back above the 40-day MA at 1.1083) would be constructive for the USD and underpin our underlying assumption here that the broader trend higher still has some room to run.

USD/CAD Levels

The 20 DMA is 1.1111, the 50 DMA is 1.1082 and the 200 DMA is 1.0624. RSI (14) reads 54.76. Supports are ascending from 1.0911, 1.0955, 1.0970 and 1.1006. Spot is 1.1052 while resistances are 1.1069, 1.1106 and 1.1170.