USD/CAD Price Analysis: Bullish pennant, weekly support line favors buyers above 1.37010

USD/CAD grinds higher around two-year low, stays inside bullish chart formation.
MACD signals hint at further grinding, one-week-old support challenge bears.
Buyers could aim for 1.3850-55 resistance area on confirming the pennant formation.

Anil Panchal FXStreet

USD/CAD remains sidelined around the 27-month high marked earlier in the week, steadies near 1.3730 during Wednesday’s Asian session. In doing so, the Loonie pair portrays the trader’s indecision amid a bullish chart pattern and bearish MACD signals.

Also keeping the quote on the buyer’s radar is the one-week-old ascending trend line.

However, the upside momentum needs validation from the pennant’s upper line, at 1.3770 by the press time.

Following that, an upward trajectory towards the yearly top near 1.3810 and then to the lows marked during April 2020, around 1.3850-55, can’t be ruled out.

Meanwhile, pullback remains unattractive beyond the stated pennant’s support line, close to 1.3720 at the latest.

Even if the quote drops below 1.3720, the 1.3700 threshold and an upward sloping support line from September 20, around 1.3660, will be crucial to challenge the USD/CAD bears.

In a case where the pair remains bearish past 1.3660, the odds favoring its slump to the last Thursday’s peak around 1.3545 can’t be ruled out.

USD/CAD: Hourly chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.3724
Today Daily Change	-0.0010
Today Daily Change %	-0.07%
Today daily open	1.3734

Trends
Daily SMA20	1.3238
Daily SMA50	1.3029
Daily SMA100	1.2947
Daily SMA200	1.2815

Levels
Previous Daily High	1.3808
Previous Daily Low	1.356
Previous Weekly High	1.3613
Previous Weekly Low	1.3227
Previous Monthly High	1.3141
Previous Monthly Low	1.2728
Daily Fibonacci 38.2%	1.3713
Daily Fibonacci 61.8%	1.3655
Daily Pivot Point S1	1.3593
Daily Pivot Point S2	1.3452
Daily Pivot Point S3	1.3344
Daily Pivot Point R1	1.3842
Daily Pivot Point R2	1.3949
Daily Pivot Point R3	1.409

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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