Overview: The Canadian dollar may continue to push higher against its haven -associated counterparts, on the back of positive coronavirus vaccine developments and the Bank of Canada’s wait-and-see approach to monetary policy. On the Freeland stated that government will make it carefully judged, targeted and created the meaning full investments to create job and boost growth, and financially support the economic policy of the country and enhance the growth and stop the Covid-19 from doing long term damage.
The pairs appeared as it creating the ascending channel pattern towards the top the momentum and created positive volatility in the market. This ascending channel predicts the price could travel more further 10% more towards the upside. The pair currency pair is trading upwards within a rising upside pattern. The bulls are creating their strong force towards the strong side in the market. The Canadian Dollar has seen gains accumulated in recent weeks and spurred by much better-than-expected Canadian economic data.
Technical Analysis: From the technical point of view, we can say that the pair is creating bullish momentum and have stalled near the November high the RSI is also giving the bullishness in the pair in the overbought territory in the market. The pair has given a new regime of bullish trading after breaking the monthly lower low swings and indicating the market to create its bullish panel. We can say that this potential pattern towards the north side prevails in the market for longer times.
On the daily chart, we can say the market is traveling towards the higher side in the market the market reached to the level of 81.61 and the RSI is also creating bullishness in the market as it’s above the 50 level. The MACD also above zero levels and creating the buy signals in the market. The support of the pair is 81.00 followed by 80.18 and resistance is 82.75 followed by 83.49. Odds are favoring the bulls and intraday bias remains bullish on the pair.
Trade Idea- : Based on the chart and studies above we would suggest that buy pair at 81.70 target is 82.50 and 83.10 stop loss is below 81.00 level.
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