USD/CAD Price Analysis: Buyers target multi-day-old resistance line above 1.3600

USD/CAD takes the bids near four-day top following Tuesday’s recovery moves.
A downward sloping trend line from May 22 in the spotlight, 200-day SMA offers strong support.
Normal RSI conditions, bullish MACD favor further upside.

Anil Panchal FXStreet

USD/CAD rises to 1.3610 amid the initial Asian session on Wednesday. In doing so, the pair escalates Tuesday’s pullback from 1.3525 to print a four-day top. Even so, a seven-week-old descending trend line seems to challenge the bulls.

That said, the pair’s latest up-moves should have taken clues from the Globe and Mail’s news suggesting that Finance Minister Bill Morneau will forecast a deficit in excess of $300-billion today.

Turning back to technicals, upbeat RSI conditions and MACD adds to the bullish sentiment that signals a break of 1.3625 mark comprising the said resistance line. However, June 26 top near 1.3715 might question the bulls afterward.

On the flip side, the 200-day SMA level of 1.3500 holds the key to the pair’s south-run towards 1.3430.

In a case where the sellers remain dominant past-1.3430, June month’s low of 1.3315 could become their favorite.

USD/CAD daily chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.3611
Today Daily Change	8 pips
Today Daily Change %	0.06%
Today daily open	1.3603

Trends
Daily SMA20	1.3583
Daily SMA50	1.3744
Daily SMA100	1.3818
Daily SMA200	1.3499

Levels
Previous Daily High	1.361
Previous Daily Low	1.3525
Previous Weekly High	1.3705
Previous Weekly Low	1.3545
Previous Monthly High	1.3802
Previous Monthly Low	1.3316
Daily Fibonacci 38.2%	1.3577
Daily Fibonacci 61.8%	1.3557
Daily Pivot Point S1	1.3549
Daily Pivot Point S2	1.3494
Daily Pivot Point S3	1.3464
Daily Pivot Point R1	1.3634
Daily Pivot Point R2	1.3664
Daily Pivot Point R3	1.3719

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.

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