USD/CAD Price Analysis: Rising within range as Canadian Dollar weakens

USD/CAD

FXStreetJul 16, 2024 12:01 PM

USD/CAD starts fresh leg higher within a multi-month range and is poised to continue rising.
The Canadian Dollar is weakening and USD/CAD has broken above all key Moving Averages.

USD/CAD looks to be starting a leg higher within a range that began unfolding in May.

The pair’s lack of directionality means the short-term trend is sideways and given the “trend is your friend” the odds favor more ups and downs to come.

USD/CAD 4-hour Chart

Currently the pair appears to be in the process of rising towards the 1.3788 ceiling as the Canadian Dollar (CAD) undergoes a period of weakening. It has broken above all three major Simple Moving Averages (SMA) – another bullish sign. A break above 1.3695 would confirm further upside.

The Moving Average Convergence Divergence (MACD) indicator crossed above its red signal line on July 5 after the initial bounce and is rising towards the zero line. This corroborates the view that an up leg is evolving. Crosses of the MACD above and below its signal line have coincided with most of the turns within the range so far, suggesting it has been a particularly reliable indicator.

Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.