USD/CAD Price Analysis: Justifies bullish Doji candlestick to snap three-day downtrend near 1.3600
- USD/CAD prints the first daily gain in four, mildly bid of late.
- Bullish candlestick formation, upbeat MACD signals keep buyers hopeful.
- Sustained break of four-month-old previous resistance line strengthens the bullish bias.
USD/CAD prints mild gains around 1.3600 as bears take a breather after a three-day losing streak during early Monday morning in Asia.
In doing so, the Loonie pair justifies the previous day’s bullish Doji candlestick, as well as upbeat MACD signals, to back the pair’s rebound from the 10-DMA support. The Loonie pair’s further recovery, however, needs validation from the previous monthly high surrounding 1.3665 to convince USD/CAD buyers.
Even if the Loonie pair manages to stay beyond the 1.3665 hurdle, the late 2022 peak of 1.3705 appears the key as it holds the gate for the quote’s run-up towards the last November’s high surrounding 1.3810.
Should the USD/CAD pair remains firmer past 1.3810, the odds of its run-up to challenge the previous yearly high of 1.3977 can’t be ruled out.
On the flip side, the 10-DMA and previous resistance line from November 2022, respectively around 1.3590 and 1.3525 challenge the USD/CAD bears.
Following that, multiple support levels around 1.3480-70 and 1.3330 could restrict the pair’s further downside before highlighting the previous monthly low of 1.3262, as well as the last November’s trough surrounding 1.3225 for bears.
Overall, USD/CAD is likely to be firmer unless breaking the 1.3525 level, but the upside room appears limited.
USD/CAD: Daily chart
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.
