USD/CAD Price Analysis: Bounces off 200-SMA towards 1.2985 hurdle
|- USD/CAD remains firmer after refreshing three-week high the previous day.
- RSI, MACD also favor recovery from 200-SMA, horizontal resistance line from July 19 tests bulls.
- Weekly support line, 61.8% Fibonacci retracement level challenge bears.
USD/CAD bull keep reins around 1.2950 as the quote extend the previous day’s bounce off 200-SMA to Monday’s Asian session.
The Loonie pair’s recent rebound also takes clues from the firmer RSI, not overbought, as well as the MACD signals, which in turn keep buyers hopeful.
However, tops marked on July 19 and also on Friday, around 1.2985, appear to challenge the USD/CAD bulls.
Following that, a horizontal area comprising multiple levels marked since June 17, near 1.3080, will be important to watch for further upside moves. Also, the 1.3000 psychological magnet may act as an intermediate halt during the anticipated north-run.
Meanwhile, pullback moves remain elusive beyond the 200-SMA level of 1.2920.
Even so, an upward sloping support line from August 01, close to 1.2845 by the press time, could challenge the USD/CAD bears.
It’s worth noting that the recent swing low around the 61.8% Fibonacci retracement of June 08 to July 14 upside, near 1.2790, appears the last defense of USD/CAD bulls.
USD/CAD: Four-hour chart
Trend: Further upside expected
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