USD/CAD Price Analysis: Bounces off 50-HMA amid impending bull cross on MACD
|- USD/CAD picks up bids to reverse the previous day’s pullback from six-week high.
- Sustained trading beyond key moving averages, support lines favor buyers.
- Sellers need validation from 1.2900 to retake control.
USD/CAD renews intraday top near 1.3025 as it rebounds from the 50-HMA to consolidate the week-start losses around a 1.5-month high. That said, the Loonie pair’s recovery moves also take clues from the MACD signals.
Given the looming bull cross of the MACD line to the signal line, as well as the bounce off the key HMA, USD/CAD may witness further upside.
However, a one-week-old upward sloping resistance line, near 1.3080 by the press time, could test the advances before highlighting the 1.6100 threshold.
Following that, 1.3130 and the 1.3200 round figures may entertain USD/CAD bulls before directing them to the yearly high near 1.3240.
Alternatively, pullback moves may initially test the 50-HMA support level of the 1.3000 threshold.
Even if the quote drops below the 1.3000 mark, the convergence of the 100-HMA and the 200-HMA, near 1.2980, will challenge the USD/CAD bears.
It’s worth noting that ascending support lines from August 11 and 17, respectively around 1.2940 and 1.2925, appear the key challenges for the pair sellers to watch past 1.2980. Additionally, the 1.2900 round figure appears the last defense of the pair buyers.
USD/CAD: Hourly chart
Trend: Further upside expected
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