USD/CAD Price Analysis: Off immediate support line to snap two-day downtrend near 1.3600

USD/CAD grinds near intraday high as bulls cheer rebound from three-week-old support line.
Convergence of previous resistance line, 50-day EMA acts as the key support.
Bullish MACD signals, firmer but not overbought RSI (14) line favor Loonie pair buyers.

Anil Panchal FXStreet

USD/CAD picks up bids to refresh intraday high near 1.3605 during the first positive day in three amid the early hours of Tuesday’s European session.

In doing so, the Loonie pair portrays a U-turn from an upward-sloping support line stretched from May 08. Adding strength to the quote’s recovery are the bullish MACD signals and the RSI (14) line’s upbeat conditions, not overbought.

It should be observed that the USD/CAD pair’s successful trading beyond an 11-week-old falling resistance, now support, also keeps the pair buyers hopeful.

Hence, the bulls are all set to challenge the monthly peak marked on Friday and April’s high, respectively around 1.3655 and 1.3670.

Should the USD/CAD bulls stay in the driver’s seat past 1.3670, the late March swing high around 1.3800 and the yearly top of 1.3861, marked in March, will be in the spotlight.

On the flip side, a break of the aforementioned three-week-old support line, close to 1.3565, isn’t an open invitation to the USD/CAD bears as a convergence of the 50-day Exponential Moving Average (EMA) and resistance-turned-support from March challenges the sellers around 1.3530.

Even if the Loonie pair drops below 1.3530, multiple supports around 1.3400 may test the downside momentum before directing the bears to the monthly bottom of near 1.3315.

USD/CAD: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.3606
Today Daily Change	0.0015
Today Daily Change %	0.11%
Today daily open	1.3591

Trends
Daily SMA20	1.351
Daily SMA50	1.3524
Daily SMA100	1.3513
Daily SMA200	1.3496

Levels
Previous Daily High	1.3623
Previous Daily Low	1.3583
Previous Weekly High	1.3655
Previous Weekly Low	1.3485
Previous Monthly High	1.3668
Previous Monthly Low	1.3301
Daily Fibonacci 38.2%	1.3598
Daily Fibonacci 61.8%	1.3608
Daily Pivot Point S1	1.3575
Daily Pivot Point S2	1.3559
Daily Pivot Point S3	1.3535
Daily Pivot Point R1	1.3615
Daily Pivot Point R2	1.3639
Daily Pivot Point R3	1.3655

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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