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.
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
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.
