USD/CAD Price Analysis: Crosses 200-DMA to refresh monthly high
|- USD/CAD rises for the second consecutive day, recently on the bids.
- Sustained break of the key moving average, MACD conditions back the bulls.
- Ascending trend line from early June restricts short-term downside.
USD/CAD extends the previous day’s rebound from the key support line beyond 200-DMA during early Tuesday. In doing so, the Loonie pair takes the bids around the 1.2600 threshold to renew the highest levels since July 28.
In addition to the 200-DMA breakout, MACD histogram also teases the bulls, suggesting further upside towards the late July tops near 1.2610.
During the quote’s sustained trading beyond 1.2610, the 1.2675 can challenge the USD/CAD bulls on their way to the last month’s top surrounding 1.2810.
Meanwhile, pullback moves need to provide a daily closing below the 200-DMA level of 1.2560 to recall the USD/CAD sellers. Even so, the previously stated support line close to 1.2515 will challenge the quote’s further weakness.
In a case where the pair drops below 1.2515, the 1.2500 round figure and July 22 swing low near 1.2420 will be in focus.
USD/CAD: Daily chart
Trend: Further upside expected
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