Since January 24, USD/CAD is trading in a range zone between 1.2786 and 1.2627, above the 200 EMA and above the 21 SMA. It is currently trading at 1.2715 with a positive bias but limited below the bullish pennant pattern.
A sharp pullback in oil prices undermines the strength of the USD/CAD, linked to commodities. It helped the USD/CAD pair to bounce above the 200 EMA.
The bullish pennant technical figure could cause a strong move towards the zone 6/8 Murray located at 1.2939 and up to the psychological level of 1.3000.
On the other hand, a technical bounce off around 21 SMA located at 1.2672 will be an opportunity to continue buying the loonie, with targets at 1.2817 and at 1.2939. Additionally, a bounce off the 200 EMA will also give us a good opportunity to buy this area.
The eagle indicator broke out of the bearish channel that had formed since December 21. This is a sign for a continuation of move higher of the USD/CAD which could occur in the coming weeks toward the resistance of 6/8 Murray at 1.2939.
Support and Resistance Levels for February 16 - 17, 2022
Resistance (3) 1.2817
Resistance (2) 1.2780
Resistance (1) 1.2730
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Support (1) 1.2686
Support (2) 1.2656
Support (3) 1.2612
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Scenario
Timeframe Daily
Recommendation: Buy above
Entry Point 1.2672; 1.2630
Take Profit 1.2817; 1.2939
Stop Loss 1.2625; 1.2590
Murray Levels 1.2939 (6/8), 1.2817(5/8), 1.2695 (4/8), 1.2573 (3/8)
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