USD/CAD Price Analysis: Bulls take a breather around 1.2510 ahead of BOC
- USD/CAD trims early Asian losses to regain the 1.2500 threshold.
- Weekly horizontal resistance probes short-term buyers inside monthly rising channel.
- One-week-old support line, 100-SMA act as immediate downside filters.
- Bullish MACD also favors buyers, BOC can extend tapering to test the upside.
USD/CAD pares early Asian losses, the first in the week, picking up bids to 1.2510 ahead of Wednesday’s European session. In doing so, the Loonie pair again aims for a short-term horizontal resistance inside a one-month-long rising channel bullish formation.
Given the bullish MACD and already priced in BOC’s extended tapering the pair prices may remain firmer following the central bank announcements.
In case of surprises, a nearby support line, close to 1.2470 and 100-SMA near 1.2445 may entertain intraday sellers. However, any further weakness will be probed by the stated channel’s lower line surrounding 1.2380.
If at all the USD/CAD bears take controls past 1.2380, late June’s swing low near 1.2250 should return to the charts.
Alternatively, an upside break of the nearby hurdle of 1.2520-25 will propel the quote towards the channel’s resistance line near 1.2620.
During the rise, the monthly high near 1.2590 and the 1.2600 may offer intermediate halts whereas the USD/CAD bulls can aim for April’s top of 1.2654 on crossing the channel’s upper line.
USD/CAD: Four-hour chart
Trend: Bullish
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.
