GOLD and USDCAD

 Gold

Gold hit its highest level since January 2021 at the start of last week thanks to the dip in the US dollar. Since then, the dollar has recovered a little and put some pressure on gold but the precious metal’s uptrend since April is still in play.

While gold holds above the simple moving averages, the broader bullish move is likely to continue. A break above the recent high of $1,912 should see it target $1,927. The market has been drifting lower recently and a move back through $1,882 might put $1,872 in sights.

The MACD indicator is still in negative territory which suggests the momentum is with the bears but selling pressure has waned so an upswing in price could be afoot. The RSI is in the middle of the range which suggests there is no strong bias in either direction with respect to price action.

USDCAD

A busy week ahead for Canadian dollar traders with many economic events taking its toll on the ‘loonie’ – especially the OPEC+’s monthly meeting on June 1 which will also affect oil prices.

Technically, the USDCAD extended its consolidation phase around the crucial 2017 lows of 1.2060 for the third consecutive week, increasing speculation that the bears are losing the fight and the bulls could soon take charge. The positive slope in the RSI and the Stochastics, which are running away from oversold territories, and the upside reversal in the MACD suggest that downside risks are fading.

The 20-day simple moving average is still an important resistance level at 1.2140 and unless it gives way, the bears could dominate, risking another negative extension towards the support levels of 1.1920. However, if the bulls were able to defeat the 20-day SMA, the price could accelerate towards the 1.2265 – 1.2300 zone.