The Canadian Dollar Breaks Key Levels

• 22 Jan 2018

USD/CAD

The USD/CAD pair has broken through a key trend-line after bouncing back from a significant support level at the 1.241 price line. The pair now appears to be dominated by bulls and is approaching a key resistance line at the 1.255 price level. Momentum indicators are mixed suggesting their may not be enough conviction from buyers to reach the 1.255 price level.

EUR/CAD

The EUR/CAD pair has retraced after hitting the upper Bollinger band and has begun to approach the 1.524 price line again. Momentum indicators suggest that sentiment remains bullish; with MACD just breaking the zero line to the upside and RSI falling just short of overbought territory. There appears to be potential for further upside for the pair which may take price closer to the recent top at the 1.534 price level.

GBP/CAD

Pound buyers may have reached exhaustion after six consecutive bullish moves to take the pair through the 1.729 price level. The first bearish candle in such a run could signal a reversal; which is also supported by RSI taking a more bearish trajectory having hit the 70 resistance line. MACD has just broken the zero line, however, is a lagging indicator and may not entirely reflect sentiment in the market- especially considering it is divergent with price action and RSI.

NZD/CAD

The NZD/CAD pair is also approaching overbought conditions. Despite breaking a longer-term market top, the pair has been under significant selling pressure in recent trading sessions. RSI has also reached the overbought 70 zone indicating that New Zealand dollar’s dominance may be coming to an end.