USD/CAD technical analysis: Looks north with channel breakout
|- USD/CAD's daily chart shows a falling channel breakout.
- Technical indicators like the RSI are also reporting bullish conditions.
USD/CAD closed at1.3165 on Thursday, confirming a falling channel breakout on the daily chart.
The breakout is backed by an above 50-reading on the 14-relative strength index. Further, the 5-, 10-and 21-day moving averages are trending north.
The moving average convergence divergence (MACD) histogram is also gaining altitude, a sign the bullish momentum is gathering pace.
All-in-all, the path of least resistance is to the higher side. The pair could rise to 1.32 and possibly to 1.3266 (200-day MA) in the short-term.
The bullish view would be aborted if the pair finds acceptance below the ascending 10-day MAs.
Daily chart
Trend: Bullish
Pivot points
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