- 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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
