Asset Watch
Tuesday, April 18, 2023
Even though the USD/CAD ended the Apr. 14 session below its 200-day moving average, it bounced near its 50-week MA. And with the latter acting as weekly support since 2022, further strength near 1.33 is a bullish sign.
On top of that, the USD/CAD’s 38.2% Fibonacci retracement level (1.3227) acted as resistance in July and August 2022, was support in November 2022, and, to a lesser degree, was also support in January 2023. Therefore, another line of defence is present if the currency pair breaks below the 50-week MA.
So, does the USD/CAD have the fuel to ignite a bullish fire, or will its neighbour to the north win the FX battle over the next few months?