USD/CAD technical analysis: 1.3425/30 guards the upside
- Recent lows/highs join 4H 200MA to highlight 1.3425/30 as important resistance.
- Immediate ascending trend-line limits the downside.
Even if an ascending trend-line since last-Wednesday portrays the USD/CAD pair’s strength, it is yet to clear the 1.3425/30 resistance confluence as it seesaws near 1.3410 during the early Asian session on Tuesday.
Not only late-May lows and early-June tops but 200-bar moving average (4H 200MA) also increases the importance of 1.3425/30 resistance, a break of which can trigger the pair’s rally towards May 30 low surrounding 1.3485 and then to 1.3500.
During the quote’s additional rise past-1.3500, 1.3530 and previous month tops near 1.3565 could become bulls’ favorites.
On the downside, 1.3400 and short-term upward sloping trend-line at 1.3375 can entertain sellers during the pair’s pullback.
It should, however, be noted that the pair’s decline below 1.3375 can shift market focus to 1.3345 and 1.3280 supports.
USD/CAD 4-Hour chart
Trend: Pullback 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.
