USD/CAD Price Analysis: Pierces monthly resistance line but 21-DMA probes bulls
- USD/CAD picks up bids to refresh intraday high, extends bounce off 1.5-month low.
- Firmer RSI, looming bull cross on MACD keep buyers hopeful.
- 100-DMA appears crucial hurdle for the bulls to cross.
- Pullback remains elusive unless the quote stays beyond 1.3300.
USD/CAD holds onto the week-start recovery from a six-week low as it crosses the monthly resistance line during early Tuesday, refreshing intraday high around 1.3415 by the press time.
In doing so, the Loonie pair justifies the rebound from the 1.3300 round figure, as well as the recovery in the RSI (14) line. With this, the MACD also teases buyers and adds strength to the upside bias.
However, the 21-DMA hurdle surrounding 1.3425 holds the key for the USD/CAD pair’s further upside towards the 1.3500 round figure.
In a case where the Loonie pair remains firmer past 1.3500, the January 19 swing high near 1.3520 and the 100-DMA hurdle surrounding 1.3530 could probe the bulls before directing them to the monthly high of 1.3680.
It’s worth noting that the 61.8% Fibonacci retracement level of the USD/CAD pair’s October-November downside, near 1.3690, precedes the 1.3700 round figure to act as the last defense of the bears.
On the contrary, a daily closing below the stated resistance line, close to 1.3400 by the press time, could renew the downside move targeting the latest swing low near 1.3300.
However, any further weakness in the USD/CAD price won’t hesitate to challenge the late 2022 bottom near 1.3225.
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.
