USD/CAD Price Analysis: Pierces immediate hurdle on the way to 1.3200
- USD/CAD regains upside momentum, picks up bids around seven-week high.
- Bulls attack three-day-old resistance line inside three-week-old bullish channel.
- Weekly support line, 100-SMA also restrict bear’s entry.
USD/CAD crosses a downward sloping resistance line from Thursday during Monday’s Asian session, grinds higher around the intraday top of 1.3152 by the press time.
In addition to the upside break of the short-term resistance line near 1.3150, the USD/CAD bulls also cheer firmer RSI (14), not overbought, to aim for the monthly high near 1.3210.
However, the upper line of an ascending trend channel from August 11, near the 1.3200 threshold, could test the buyers. Also challenging the upside momentum is the yearly top marked in July, around 1.3225.
It should be noted that the USD/CAD pair sellers are less likely to take the risk of entry until witnessing a clear downside break of the bullish channel’s support, at 1.3005 by the press time.
Even so, the 100-SMA level surrounding 1.2985 acts as an additional downside filter before directing the bears towards the previous monthly bottom near 1.2730.
That said, an upward sloping support line from August 25, around 1.3100, acts as short-term key support inside the bullish chart pattern.
Overall, USD/CAD remains on the bull’s radar but the upside is likely to be slow and gradual.
USD/CAD: Four-hour 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.
