USDCAD falls to converged 100/200 hour MA. Key goal suport.

The USD/CAD surged sharply increased on Tuesday following information of a proposed 25% tariff on all Canadian items by former President Trump, contingent on the continued “stream of unlawful immigrants” on the border. Adam addressed the difficulty right here: “Tariff man loses his fastball”.

The spike increased propelled the pair to its highest degree since April 2020. Nevertheless, sellers shortly stepped in, reversing a lot of the positive factors as broader USD promoting gained momentum. The draw back transfer prolonged immediately, supported by constructive financial knowledge and a robust 7-year word public sale, additional pressuring the pair decrease.

The worth is now testing the converged 100-hour and 200-hour transferring averages at 1.40138, a vital technical degree that aligns with the low of a swing space highlighted on the chart. This zone serves as a pivotal barometer for purchaser and vendor exercise.

A sustained transfer beneath this degree, coupled with a break beneath the psychological 1.4000 degree (which additionally aligns with the 50% retracement), would solidify the sellers’ management.

Conversely, holding above this space might result in a rebound towards the damaged 38.2% retracement at 1.40417. A break again above that degree would reinforce a bullish bias and open the door for additional upside.

This text was written by Emma Wang at www.ubaidahsan.com.



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