USD/CAD Price Analysis: Bulls eye another battle with two-month-old hurdle near 1.3080

USD/CAD extends the previous day’s run-up towards a short-term key resistance line.
Sustained break of important DMAs, firmer oscillators favor bulls.
Bears need validation from three-month-long support line, buyers can aim for 61.8% FE.

Anil Panchal FXStreet

USD/CAD regains upside momentum, after previously easing from the highest levels since November 2020. In doing so, the Loonie pair again prepares to overcome a two-month-old resistance line while picking up bids near 1.3050 heading into Wednesday’s European session.

Given the USD/CAD pair’s successful break of 10-DMA, not forgetting the rebound from the 50-DMA, the quote is likely to overcome the immediate resistance line around 1.3080. Also keeping the pair buyers hopeful is the firmer RSI (14), not oversold, as well as the bullish MACD signals.

That said, the quote’s sustained break of 1.3080 hurdle will aim for the 61.8% Fibonacci Expansion (FE) of June 08-28 moves, near 1.3165.

In a case where USD/CAD remains firmer past 1.3165, the October 2020 high near 1.3370 will gain the buyer’s attention.

Alternatively, pullback moves need to break the 10-DMA level surrounding 1.2925 to convince intraday sellers of the pair.

Following that, the 50-DMA support of 1.2840 will gain the bear’s attention. However, an upward sloping trend line from April, near 1.2590, will be watched carefully to confirm the bearish trend, if any.

USD/CAD: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.3052
Today Daily Change	0.0018
Today Daily Change %	0.14%
Today daily open	1.3034

Trends
Daily SMA20	1.2891
Daily SMA50	1.2837
Daily SMA100	1.2743
Daily SMA200	1.2684

Levels
Previous Daily High	1.3084
Previous Daily Low	1.2844
Previous Weekly High	1.2966
Previous Weekly Low	1.2819
Previous Monthly High	1.3079
Previous Monthly Low	1.2518
Daily Fibonacci 38.2%	1.2992
Daily Fibonacci 61.8%	1.2935
Daily Pivot Point S1	1.2891
Daily Pivot Point S2	1.2747
Daily Pivot Point S3	1.2651
Daily Pivot Point R1	1.3131
Daily Pivot Point R2	1.3227
Daily Pivot Point R3	1.3371

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.

EUR/USD: Gains remain capped by 1.1650

EUR/USD remains in recovery-mode following the closing bell in Euroland on Wednesday, hovering around the 1.1650 zone amid renewed downside pressure on the US Dollar and a marginal improvement in the global sentiment.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.