USD/CAD Price Analysis: Bulls challenge monthly ascending channel resistance, around 1.3200 mark

USD/CAD gains some follow-through traction and climbs to multi-week tops.
Falling crude oil prices undermined the loonie and remained supportive.

Haresh Menghani FXStreet

The USD/CAD pair added to last week's positive move and gained some follow-through traction for the second consecutive session on Monday. The momentum lifted the pair to fresh monthly tops, with bulls now challenging the top end of monthly ascending trend-channel.

A sharp fall in crude oil prices – concerns over the outbreak of the deadly coronavirus – undermined demand for the commodity-linked currency – the loonie. This coupled with the prevailing risk-off mood benefitted the USD's perceived safe-haven status and remained supportive.

Meanwhile, technical indicators on maintained their bullish bias on short-term charts, albeit have moved on the verge of breaking into the overbought territory on hourly charts. This seemed to be the only factor holding traders from placing fresh bullish bets and might cap additional gains.

Having said that, sustained strength above the mentioned barrier might accelerate the momentum further towards the very important 200-day SMA, around the 1.3235 region. The pair then might aim towards testing the next major resistance near the 1.3265-70 supply zone.

On the flip side, immediate support is now pegged near mid-1.3100s (daily lows) and is closely followed by the 1.3125-20 horizontal zone. Failure to defend the mentioned support levels might now drag the pair back below the 1.3100 mark towards the 1.3070-60 resistance breakpoint turned support.

USD/CAD daily chart

USD/CAD

Overview
Today last price	1.3196
Today Daily Change	0.0054
Today Daily Change %	0.41
Today daily open	1.3142

Trends
Daily SMA20	1.3048
Daily SMA50	1.3147
Daily SMA100	1.3178
Daily SMA200	1.3234

Levels
Previous Daily High	1.3154
Previous Daily Low	1.3118
Previous Weekly High	1.3174
Previous Weekly Low	1.3036
Previous Monthly High	1.3322
Previous Monthly Low	1.2951
Daily Fibonacci 38.2%	1.314
Daily Fibonacci 61.8%	1.3132
Daily Pivot Point S1	1.3122
Daily Pivot Point S2	1.3102
Daily Pivot Point S3	1.3086
Daily Pivot Point R1	1.3158
Daily Pivot Point R2	1.3174
Daily Pivot Point R3	1.3194

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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