USD/CAD short term outlook
- Short-term retail traders remain bearish on USD/CAD
- USD/CAD approaches the next level of importance at (1)
The USD/CAD currency pair suffered a steep decline last week after losing its stability at the 13341.1 resistance level. Since the relentless decline, prices finally found a base at the demand zone this week which was last seen in September of this year. During this morning’s Asian session, a surge in buying pressure has elevated prices by 0.38% at the time of writing. Official data suggests retail traders continue to sell this pair into the rally.
A look at the 4hr USD/CAD chart shows the demand zone, which was the precursor for the late September ‘20 rally has once again attracted large speculators to the table, with a first target set at 13223.5 for quick profit-taking (1). Above the 200 SMA and beyond twin resistance marked at (1) could well open the door to mid 13250s and 13320’s in extension. Alternatively, another leg lower will most likely follow if resistance holds at (1) for the short term.