USD/CAD Price Analysis: Loonie bulls need validation from 1.3390 and US/Canada employment data

USD/CAD grinds near three-week high as key US, Canada data looms, clings to 50-EMA hurdle.
Bullish MACD signals, upbeat RSI favors Loonie pair buyers to cross immediate EMA resistance but 200-EMA can prod the bulls.
Four-month-old descending resistance line appears the last defense of bears.
Previous resistance line from November 2022, short-term rising trend line limits immediate downside.

Anil Panchal FXStreet

USD/CAD bulls take a breather around the highest levels in three weeks, after rising the most in 1.5 months the previous day, as it flirts with the 50-Exponential Moving Average (EMA) hurdle amid Friday’s Asian session. That said, the Loonie pair seesaws around 1.3365-70 as markets turn cautious ahead of the top-tier US and Canada employment figures.

Also read: USD/CAD soars to multi-week highs amid hawkish bets on the Fed

It should be noted that the Loonie pair’s upside break of an ascending resistance line stretched from November 2022, now immediate support near 1.3340, joins the bullish MACD signals and upbeat RSI (14) line, not overbought, to keep buyers hopeful of crossing the nearby hurdle of 1.3365.

However, the 200-EMA surrounding 1.3390 appears a major problem for the USD/CAD pair’s further upside.

In a case where the USD/CAD manages to cross the 1.3390 hurdle, also the 1.3400 round figure, it can aim for the 38.2% Fibonacci retracement of its October 2022 to June 2023 downturn, near 1.3445.

Following that, a downward-sloping resistance line from March, near 1.3520 at the latest, will be crucial to watch for clear directions.

On the contrary, a downside break of the resistance-turned-support line, around 1.3340 at the latest, can recall the intraday sellers.

Even so, a one-week-old rising support line near 1.3260 will prod the USD/CAD bears before directing them to the multi-month low marked in the last week around 1.3115.

USD/CAD: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	1.3365
Today Daily Change	0.0084
Today Daily Change %	0.63%
Today daily open	1.3281

Trends
Daily SMA20	1.3247
Daily SMA50	1.3402
Daily SMA100	1.3491
Daily SMA200	1.3507

Levels
Previous Daily High	1.3293
Previous Daily Low	1.322
Previous Weekly High	1.3285
Previous Weekly Low	1.3117
Previous Monthly High	1.3585
Previous Monthly Low	1.3117
Daily Fibonacci 38.2%	1.3265
Daily Fibonacci 61.8%	1.3248
Daily Pivot Point S1	1.3236
Daily Pivot Point S2	1.3192
Daily Pivot Point S3	1.3163
Daily Pivot Point R1	1.3309
Daily Pivot Point R2	1.3338
Daily Pivot Point R3	1.3382

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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