USD/CAD Technical Analysis: Bulls struggle to make it through a descending trend-line resistance
|- USD/CAD pair traded with a mild positive bias and held steady above 1.3300 handle.
- Bulls still await a sustained break through a multi-month descending trend-line resistance.
The USD/CAD pair held steady above the 1.3300 handle, closer to multi-week tops through the mid-European session on Tuesday, with bulls still awaiting a sustained breakthrough a 5-1/2-month-old descending trend-line resistance.
Given that the pair has already found acceptance above the very important 200-day SMA, the technical set-up seems tilted in favour of bullish traders and support prospects for an eventual break through the mentioned trend-line barrier.
Meanwhile, bullish oscillators on the daily chart further reinforce the constructive outlook, though traders are likely to wait for some strong follow-through buying before positioning for any further near-term appreciating move.
The momentum could then lift the pair towards October monthly swing highs, around mid-1.3300s, above which bulls are likely to aim towards testing the 1.3380-85 intermediate resistance ahead of the 1.3400 round-figure mark.
On the flip side, any meaningful pullback might continue to attract some dip-buying near the 1.3280-75 region (200-DMA), which if broken decisively might negate the positive bias and prompt some aggressive selling.
Sustained weakness below the said support might turn the pair vulnerable to accelerate the corrective slide further towards challenging the 1.3200 handle en-route its next major support near the 1.3160-50 region.
USD/CAD daily chart
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