The USD / CAD pair is trading at 1.2317 after having reached its high of 1.2485 very close to the psychological level of 1.25. Now we see a correction of the upward movement. The price is located below the SMA of 21 (1.2379) and below the strong resistance of 6/8 murray at 1.2451.
The optimistic market mood on the safe haven demand for the US dollar gave USD / CAD a bullish momentum, weakening it to trade near the psychological level of 1.25.
We are now seeing some recovery in USD / CAD, and there is likely to be a drop to the 4/8 murray zone located at 1.2207.
Any bullish attempt by the Canadian Dollar to get close to the 21 SMA (1.2379) will be a good opportunity to sell with targets at 1.2278 and 1.2207.
The strong resistance of 6/8 of murray will be for a long time the barrier that will prevent the pair from weakening further, so we must consider this key area to sell below this level.
The key support is at 1.2207 and a little lower the 200 EMA acts as a dynamic support that will sustain bullish momentum. Therefore, in the medium term we believe that the currency pair will move between a range of 1.2451 and 1.2134.
Our recommendation is to sell below the SMA of 21 (1.2379) or if it manages to overcome this level, below the 1.2451 level of 6/8 of murray we can sell with short-term targets at 1.2207.
Support and Resistance Levels for June 23 – 24, 2021
Resistance (3) 1.2478
Resistance (2) 1.2437
Resistance (1) 1.2370
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Support (1) 1.2268
Support (2) 1.2238
Support (3) 1.2164
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Trading tip for USD/CAD for June 23 - 24, 2021
Sell if pullback 1.2378 (SMA 21), with take profit at 1.2276 and 1.2207(4/8), stop loss above 1.2405.
The material has been provided by InstaForex Company - www.instaforex.com