USD/CAD Technical Analysis: Sustained move beyond descending trend-line awaited
- Bulls still seemed struggling to make it through a descending trend-line.
- The set-up support prospects for a retest of Oct. swing high, mid-1.3300s.
The USD/CAD pair held steady near multi-week tops, just above the 1.3300 handle, with bulls still awaiting a sustained breakthrough a 5-1/2 month-old descending trend-line resistance.
Given that the overnight move beyond the very important 200-day SMA, a sustained breakthrough the mentioned trend-line barrier might now be seen as a key trigger for bullish traders.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and have also eased from slightly overbought conditions on hourly charts, reinforcing the constructive outlook.
However, traders are likely to wait for a strong follow-through buying beyond the said barrier before positioning for a subsequent appreciating move towards October monthly swing highs near mid-1.3300s.
On the flip side, any meaningful pullback might attract some dip-buying near the 1.3275 region (200-DMA), which if broken might negate the positive bias and prompt some aggressive long-unwinding trade.
Below the said support, the pair is likely to accelerate the corrective slide further towards challenging the 1.3200 handle before eventually dropping to the next major support near the 1.3160-50 region.
USD/CAD daily chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
