USDCAD is in consolidation mode and is trading just above last week’s low. A bullish trend condition remains intact. However, key supports at 1.3636, the 50-day EMA, and 1.3610, the May 3 low, have been pierced. A clear break of both levels would threaten the bullish theme and instead signal scope for a deeper retracement. For bulls, a resumption of gains would refocus attention on the bull trigger at 1.3846, the Apr 16 high.
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Despite the pullback in Silver from the Apr 12 high, the trend outlook remains bullish. Recent trend gains and a bullish moving average set-up, reinforce the current positive outlook. Scope is seen for a climb towards the $30.00 psychological handle. A break of this level would strengthen the bullish set-up. Initial firm support lies at $27.195, the 20-day EMA. A move lower in the metal would be considered corrective.
Equity index futures are biased higher ahead of the European cash open, indicating a firm start to the day. Euro Stoxx 50 futures show 0.7% firmer, while FTSE 100 futures are ~1.2% better off. Watch Swiss banks after the SNB hiked reserve requirements earlier today.
A bullish trend condition in USDCAD remains intact and the most recent pullback appears to be a correction. The pair has recently cleared resistance at 1.3614, the Mar 19, 22, 25 and 29 high. This opens 1.3855 next, Nov 10 ‘23 high. Note that MA studies remain in a bull-mode position, highlighting a clear rising trend. The pullback from last Tuesday’s high is allowing an overbought condition to unwind. Support lies at 1.3667, the 20-day EMA.