- USD / CAD is recovering from multi-year lows, capped by the 200 hourly SMA.
- Buyers remain hopeful amid a bullish RSI on the 1 hour chart.
- The focus is on US stimulus news and Canadian retail sales data.
USD / CAD consolidates its recovery from multi-year lows as the bulls take a breather ahead of the release of Canadian retail sales data. Markets are also awaiting further updates on the stimulus talks in the United States.
Technically, the pair has entered a consolidation mode after facing rejection at the 200 hourly horizontal moving average at 1.2759.
However, the immediate drop remains defended by the 100 hourly SMA, now at 1.2737.
Lower down, the confluence of the 21 and 50 hour SMAs around 1.2930 will challenge bears’ engagement.
On the other hand, acceptance above the 200 hourly SMA could point to a test of the round 1.2800 level.
The RSI on the 1 hour chart is moving higher near 58, suggesting that the road to recovery likely remains intact.
The path of least resistance is to the upside after USD / CAD confirmed a breakout of the descending triangle on the 1-hour chart early in the Asian session this Friday.
USD / CAD 1 hour chart
USD / CAD technical levels
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