USD/CAD Price Analysis: Bulls approach 1.3765 hurdle within weekly triangle
|- USD/CAD picks up bids to refresh intraday high, reverses week-start pullback.
- One-week-old symmetrical triangle restricts immediate moves of the Loonie pair.
- 100-SMA adds strength to 1.3685 support confluence, 50-SMA guards immediate upside.
- MACD, RSI (14) line suggest a slower grind towards the north.
USD/CAD reverses the early Asian session losses as it prints mild gains around 1.3735 during early Monday morning in Europe. In doing so, the Loonie pair defends the previous day’s recovery moves inside a one-week-old symmetrical triangle.
That said, the quote’s latest rebound could be linked to the failure to break the 1.3685 support confluence encompassing the 100-bar Simple Moving Average (SMA) and lower line of the stated triangle.
Adding strength to the recovery moves is the steady RSI (14) and a lack of bearish MACD signals.
As a result, the Loonie pair is all set to poke the 50-SMA hurdle of 1.3750. However, the stated triangle’s top line, close to 1.3765, will be crucial to watch afterward.
Should the quote manage to remain firmer past 1.3765, the monthly high of 1.3861 could act as a buffer before fueling the USD/CAD price towards the previous yearly top of 1.3977 and then to the 1.4000 psychological magnet.
On the flip side, a clear break of the 1.3685 support confluence becomes necessary to convince USD/CAD bears.
Even so, multiple supports near 1.3650, marked during late February and early March, can test the Loonie pair sellers before giving them control.
Following that, a south run towards the 61.8% Fibonacci retracement level of February-March upside, near 1.3490 can’t be ruled out.
Overall, USD/CAD remains on the bull’s radar even if the run-up appears slow.
USD/CAD: Four-hour chart
Trend: Further upside expected
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