- USD/CAD seesaws around six-week high after rising the most in three weeks the previous day.
- Descending resistance line from early November 2022 guards immediate upside.
- Upside break of 100-DMA, four-month-old trend line keeps buyers hopeful.
USD/CAD grinds near a 1.5-month high during early Wednesday, after crossing the key moving average and resistance line the previous day.
That said, the Loonie pair struggles to defend USD/CAD bulls as a downward-sloping resistance line from early November 2022, close to 1.3555 at the latest, challenges the immediate upside of the quote.
The upbeat performance of the USD/CAD price could be linked to the strong RSI (14), not overbought.
It should be noted, however, that the January 2023 peak surrounding 1.3685 and late 2022 top near 1.3705, could act as the last defense of the USD/CAD bears.
As a result, the USD/CAD upside appears to have limited room towards the north.
Meanwhile, a daily closing below the 100-DMA and the previous resistance line from early October 2022, respectively near 1.3515 and 1.3505, precede the 1.3500 round figure and could recall the USD/CAD bears.
Following that, the 50% Fibonacci retracement level of the pair’s August-October 2022 upside, near 1.3355, will challenge the USD/CAD bears before directing them to the 200-DMA and the 61.8% Fibonacci retracement level of 1.3210, also known as golden Fibonacci ratio.
Overall, USD/CAD remains on the bear’s radar even as the road to the north appears bumpy.
USD/CAD: Daily chart
Trend: Further upside expected
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