- 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.
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
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