USD/CAD Price Analysis: Grinds higher past 1.3370 support confluence
- USD/CAD grinds higher after bouncing off 50-SMA, one-week-old support line.
- Upbeat oscillators back the rebound from key support to help buyers approach three-week-long resistance line.
- Descending trend line from late December 2022 appears the key hurdle.
USD/CAD buyers take a breather around 1.3450 during Thursday’s sluggish Asian session, following their return to the desk from a one-week low. In doing so, the Loonie pair justifies the previous day’s rebound from a convergence of the 50-SMA and a weekly ascending trend line.
Also keeping the pair buyers hopeful is the impending bull cross on the MACD and the upbeat RSI (14) that backs the latest recovery.
As a result, the USD/CAD bulls approach a downward-sloping resistance line from January 19, close to 1.3470, a break of which could quickly propel prices towards the late January peak surrounding 1.3520.
It should be noted, however, that a seven-week-old descending resistance line, close to 1.3590, appears a crucial resistance for the bulls to watch past 1.3520 as it holds the key to a run-up towards 1.3700.
Alternatively, pullback moves remain elusive unless the quote stays beyond the 1.3370 support confluence including the aforementioned SMA and immediate trend line support.
Following that, the 1.3300 round figure and the monthly low near 1.3260 should gain the market’s attention.
In a case where USD/CAD remains bearish past 1.3260, an area comprising the last July’s top and November 2022 low, around 1.3220-25, could challenge the sellers.
USD/CAD: Four-hour chart
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Trend: Further upside expected
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.
