USD/CAD Price Analysis: Rejects fortnight-old bearish channel as bulls approach 1.2900
|- USD/CAD takes the bids to refresh intraday high during three-day uptrend.
- Bullish MACD signals, successful break of two-week-old bearish channel’s resistance favors buyers.
- 200-SMA acts as an additional upside filter while sellers have a bumpy road to return.
USD/CAD extends the previous upside momentum while ejecting the short-term bearish chart pattern during Wednesday’s Asian session. In doing so, the Loonie pair refreshes intraday high around 1.2890 during the three-day uptrend.
In addition to the clear upside break of the two-week-old descending trend channel, the bullish MACD signals also keep USD/CAD buyers hopeful.
However, the 200-SMA hurdle surrounding 1.2930 probes the upside momentum before highlighting the 1.3000 threshold for the bulls.
In a case where the USD/CAD prices remain firm past 1.3000, the previous monthly peak near 1.3225 will be in focus.
Alternatively, sellers need to wait for a sustained pullback below the resistance-turned-support line, near 1.2875 at the latest.
It’s worth noting, however, that the USD/CAD weakness past 1.2875 appears bumpy as multiple support levels around 1.2800 could challenge the bears before the stated channel’s lower line, close to 1.2750 at the latest.
During the quote’s weakness past 1.2750, the odds of witnessing a south-run towards June’s low near 1.2515 can’t be ruled out.
USD/CAD: Four-hour chart
Trend: Further upside expected
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