USD/CAD Price Analysis: Bulls cross 100-SMA with eyes on 1.3500
- USD/CAD takes the bids to renew one-week high on crossing short-term key hurdles, now immediate supports.
- 100-SMA, one-month-old descending trend line restrict immediate downside amid bullish MACD signals.
- Overbought RSI conditions suggest pullback from the 1.3500 round figure.
- 200-SMA acts as additional upside filters, bears need validation from 1.3320.
USD/CAD marches towards the 1.3500 threshold after crossing the short-term key resistances, around 1.3470 during Thursday’s Asian session.
In doing so, the Loonie pair cheers upside break of the one-month-old descending trend line, as well as the 100-SMA, respectively near 1.3465 and 1.3390.
It should be noted that the bullish MACD signals join the resistance breaks to keep USD/CAD buyers hopeful. However, the overbought RSI (14) restricts the quote’s further upside.
As a result, the USD/CAD bulls appear to have a limited upside room, which in turn highlights the 1.3500 round figure as an immediate hurdle ahead of the April 10 swing high of around 1.3555.
Following that, the 200-SMA hurdle of around 1.3595 and the 1.3600 round figure act as the final defense of the USD/CAD bears.
Meanwhile, a downside break of the 1.3390 resistance-turned-support isn’t an open welcome to the USD/CAD bears as an upward-sloping support line from February, close to 1.3320, becomes crucial to conquer for the Loonie pair sellers to retake control.
To sum up, USD/CAD remains on the bull’s radar but the road toward the north is long and bumpy.
USD/CAD: Four-hour chart
Trend: Limited upside 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.
