USD/CAD Price Analysis: Bullish pennant, weekly support line favors buyers above 1.37010
|- USD/CAD grinds higher around two-year low, stays inside bullish chart formation.
- MACD signals hint at further grinding, one-week-old support challenge bears.
- Buyers could aim for 1.3850-55 resistance area on confirming the pennant formation.
USD/CAD remains sidelined around the 27-month high marked earlier in the week, steadies near 1.3730 during Wednesday’s Asian session. In doing so, the Loonie pair portrays the trader’s indecision amid a bullish chart pattern and bearish MACD signals.
Also keeping the quote on the buyer’s radar is the one-week-old ascending trend line.
However, the upside momentum needs validation from the pennant’s upper line, at 1.3770 by the press time.
Following that, an upward trajectory towards the yearly top near 1.3810 and then to the lows marked during April 2020, around 1.3850-55, can’t be ruled out.
Meanwhile, pullback remains unattractive beyond the stated pennant’s support line, close to 1.3720 at the latest.
Even if the quote drops below 1.3720, the 1.3700 threshold and an upward sloping support line from September 20, around 1.3660, will be crucial to challenge the USD/CAD bears.
In a case where the pair remains bearish past 1.3660, the odds favoring its slump to the last Thursday’s peak around 1.3545 can’t be ruled out.
USD/CAD: Hourly chart
Trend: Further upside expected
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