USD/CAD Price Analysis: Pokes six-week-old resistance above 1.3500 amid overbought RSI

USD/CAD grinds at the highest level in 11 weeks as bulls take a breather after three-day uptrend.
Overbought RSI (14) line, 1.5-month-long rising trend line prod buyers but 200-DMA puts a floor under Loonie prices.
Horizontal resistance area from late February, 10-month-old falling resistance line add to upside filters.

Anil Panchal FXStreet

USD/CAD seesaws around the highest level since early June, marked the previous day, as bulls jostle with the key upside hurdle amid overbought RSI conditions. Even so, the Loonie pair defends the early-week breakout of the 200-DMA while flirting with the 1.3530-35 amid Thursday’s Asian session, after a three-day uptrend.

That said, an upward-sloping resistance line from July 07 restricts the immediate USD/CAD upside near 1.3540 as the overbought RSI and the lack of major data/events check the Loonie pair buyers.

However, a sustained upside break of the 200-DMA and the bullion MACD signals keep the buyers hopeful unless the quote drops below 1.3450 DMA support.

Even if the quote breaks the stated 1.3450 support, the early July swing high of around 1.3385 and late 2022 bottom surrounding 1.3325 may prod the USD/CAD bears.

It’s worth mentioning that a nine-month-old falling support line, close to 1.3085 at the latest, will challenge the quote’s weakness past 1.3325.

On the flip side, a daily closing beyond the immediate 1.3450 hurdle could quickly direct the USD/CAD buyers toward a horizontal area comprising multiple levels marked since late February around 1.3655–65.

Following that, a descending resistance line from October 2022, around 1.3690 by the press time, will challenge the Loonie pair buyers.

USD/CAD: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.3534
Today Daily Change	0.0036
Today Daily Change %	0.27%
Today daily open	1.3498

Trends
Daily SMA20	1.331
Daily SMA50	1.3271
Daily SMA100	1.3384
Daily SMA200	1.3451

Levels
Previous Daily High	1.3502
Previous Daily Low	1.3439
Previous Weekly High	1.3502
Previous Weekly Low	1.3356
Previous Monthly High	1.3387
Previous Monthly Low	1.3093
Daily Fibonacci 38.2%	1.3478
Daily Fibonacci 61.8%	1.3463
Daily Pivot Point S1	1.3457
Daily Pivot Point S2	1.3417
Daily Pivot Point S3	1.3395
Daily Pivot Point R1	1.352
Daily Pivot Point R2	1.3542
Daily Pivot Point R3	1.3582

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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