USD/CAD Price Analysis: Bulls attack 1.3600 to keep 200-bar SMA breakout
- USD/CAD remains mildly bid following the recent U-turn from 1.3585.
- A seven-day-old horizontal resistance restricts the pair’s immediate upside.
- Sellers can aim for June 23 low under 200-bar SMA.
USD/CAD rises to 1.3595, up 0.05% on a day, as Tokyo opens for Trading on Monday. The loonie pair remains above 200-bar SMA but fails to cross short-term horizontal resistance. As a result, traders are waiting for a clear sign of breaking the key technical levels for near-term direction.
Considering the strong RSI conditions, the pair is more likely to extend the recent recovery moves towards the 1.3625/30 resistance region. Though, it’s further upside becomes difficult and will have to travel past-1.3655 and 1.3700 to challenge the June 26 top near 1.3715.
Given the pair’s ability to stay positive beyond 1.3715, the previous month’s peak close to 1.3800 could return to the charts.
On the downside, a clear break below 200-bar SMA level of 1.3573 will drag the quote to 50% Fibonacci retracement level of June 10-26 upside, at 1.3515.
During the quote’s further weakness under 1.3515, June 23 bottom surrounding 1.3485 and 61.8% Fibonacci retracement level of 1.3468 will be the key to watch.
USD/CAD four-hour 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.
