USD/CAD Price Analysis: Bulls keep the reins around mid-1.3600 with eyes on BOC
|- USD/CAD seesaws around one-month high ahead of the key Bank of Canada (BOC) Monetary Policy Meeting.
- Clear break of previously important resistance line, 50-DMA join bullish MACD signals to favor buyers.
- The 1.3300 threshold is the last defense of USD/CAD buyers.
USD/CAD struggles for clear directions as bulls take a breather after a three-day uptrend, making rounds to the monthly high near 1.3650 during early Wednesday. In doing so, the Loonie pair portrays the trader’s anxiety ahead of the BOC Interest Rate Decision.
Even so, the successful break of the 50-DMA and downward-sloping resistance line from October 13, respectively near 1.3570 and 1.3535, keeps the USD/CAD buyers hopeful.
On the same line could be the bullish MACD signals and the recent failures to welcome bears despite a sluggish session.
That said, November’s high of around 1.3810 lures the short-term USD/CAD bulls before pushing them to confront multiple hurdles near 1.3850.
However, a sustained break of the 1.3850 mark could help the pair to challenge the yearly top marked in October around 1.3980.
On the contrary, pullback moves may initially test the 50-DMA and the resistance-turned-support, close to 1.3570 and 1.3535 in that order.
Following that, a three-week-old ascending trend line near 1.3410 could challenge the USD/CAD bears.
It’s worth noting that a convergence of the 100-DMA and an ascending trend line from late August, around 1.3310-3300 could act as the final defense for the USD/CAD buyers, a break of which will give control to the bears.
Also read: USD/CAD bulls brace for BOC’s interest rate hike amid downbeat oil prices, firmer US Dollar
USD/CAD: Daily chart
Trend: Further upside expected
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