USD/CAD Price Analysis: Bulls attack 1.3200 after breaking immediate resistance line
- USD/CAD battles pullback from 1.3193 to justify the upside break of 1.3175/80 previous resistance area.
- Bulls aim for a two-week-old falling trend line, sellers will look for entry below key HMAs.
- Strong RSI conditions, sustained break of short-term key upside hurdle, now support confluence, favor the buyers.
USD/CAD picks up the bids near 1.3190 during the early Tuesday morning in Asia. In doing so, the pair keeps Monday’s upside break of the key resistance area surrounding 1.3175/80, comprising 100 and 200-HMA as well as a falling trend line from October 15, amid strong RSI conditions.
Considering the successful break of the key short-term resistance and the RSI levels, buyers are looking for clearance of the 1.3200 threshold while aiming for another resistance line, at 1.3230 now.
Also likely to challenge the pair bulls are the 50% and 61.8% Fibonacci retracements of October 07-13 downside, respectively around 1.3220 and 1.3250.
Meanwhile, USD/CAD sellers’ entry below 1.3175 will find multiple supports between 1.3150 and 1.3145 that hold the gate for the quote’s further weakness towards the monthly low near the 1.3100 round-figure.
During the pair’s extend south-run past-1.3100, the previous month’s low around the 1.3000 psychological magnet will be crucial to watch.
USD/CAD hourly chart
Trend: Further recovery expected
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.
