USD/CAD Price Analysis: Bulls look firmer above the trendline, 1.2960 eyed

The greenback bulls are set to print fresh yearly highs above 1.2900.
The RSI (14) has shifted into a bullish range for the first time this year.
A bull cross of 20- and 50-EMAs adds to the upside filters.

Sagar Dua FXStreet

The USD/CAD pair faces barricades around 1.2870 in the Asian session; however, the broader picture looks extremely bullish. The asset has displayed a sheer upside move after hitting a low of 1.2719 on Friday.

On the daily scale, the greenback bulls have driven the major above the slightly declining trendline placed from 20 December 2021 high at 1.2964, adjoining the March’s high at 1.2901, followed by April’s high at 1.2880. The asset has strongly moved higher after sensing an intense responsive buying activity to near 10-period Exponential Moving Average (EMA) at 1.2760.

A bull cross of 20- and 50- EMAs at 1.2640 indicates more upside in the counter ahead. Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00, which signals a firmer bullish momentum going forward. The momentum oscillator has established above 60.00 for the first time this year.

For an upside momentum, the asset needs to overstep April’s high t 1.2880, which will send the asset towards March’s high at 1.2901. Breach of the latter will drive the asst towards the 20 December 2021 high at 1.2964.

On the contrary, Lonnie bulls could regain control if the asset tumbles below Thursday’s low at 1.2791. This will drag the asset towards the 10-EMA at 1.2760, followed by the round level support at 1.2700.

USD/CAD daily chart

USD/CAD

Overview
Today last price	1.2862
Today Daily Change	0.0017
Today Daily Change %	0.13
Today daily open	1.2845

Trends
Daily SMA20	1.2639
Daily SMA50	1.2656
Daily SMA100	1.2682
Daily SMA200	1.2633

Levels
Previous Daily High	1.2862
Previous Daily Low	1.2719
Previous Weekly High	1.288
Previous Weekly Low	1.2684
Previous Monthly High	1.288
Previous Monthly Low	1.2403
Daily Fibonacci 38.2%	1.2807
Daily Fibonacci 61.8%	1.2774
Daily Pivot Point S1	1.2755
Daily Pivot Point S2	1.2665
Daily Pivot Point S3	1.2612
Daily Pivot Point R1	1.2898
Daily Pivot Point R2	1.2952
Daily Pivot Point R3	1.3042

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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