USD/CAD Price Analysis: Overbought RSI favors pullback to resistance-turned-support
|- USD/CAD bulls catch a break near a 38-month high.
- Overbought RSI conditions can trigger pullback, MACD stays positive.
- Buyers will look for entry beyond the recent high to question 2016 top.
Following its jump to the highest since late-January 2016, USD/CAD seems to lack strength while taking rounds to 1.4200 amid the early Wednesday’s trading session.
In addition to its failure in extending the run-up, overbought RSI conditions also raise doubts on the pair’s further rally.
However, bullish MACD signals keep restricting the bears’ entry unless the quote slips below the three-week-old rising support line, previous resistance, currently at 1.4130.
In doing so, 1.4020 and 1.4000 will become their immediate targets while the weekly low near 1.3730 can please the sellers afterward.
Alternatively, bulls can renew buying pressure if the USD/CAD pair rises past the recent high of 1.4277, which in turn will open the gate for the additional rise towards 2016 top near 1.4690.
USD/CAD four-hour chart
Trend: Pullback expected
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