USD/CAD Price Analysis: Further upside hinges on 1.3450 breakout
- USD/CAD picks up bids to refresh intraday high.
- Bulls jostle with a convergence of the 21-DMA and two-week-old resistance line.
- MACD teases buyers, 100-DMA appears a tough nut to crack for the USD/CAD bears.
USD/CAD renews intraday high around 1.3440 during the second daily run-up amid early Monday.
In doing so, the Loonie pair buyers attack a convergence of the 21-Day Moving Average (DMA) and a downward-sloping from November 10, around 1.3440 by the press time.
It should be noted that the pair’s successful trading above the 100-DMA and steady RSI joins the impending bull cross on the MACD to keep the USD/CAD buyers hopeful of crossing the 1.3440 hurdle.
Following that, the 38.2% Fibonacci retracement of the pair’s August-October upside, near 1.3500, will challenge the USD/CAD bulls before directing them to the six-week-old resistance line around 1.3610.
On the flip side, a two-week-old ascending support line, near 1.3320 could restrict the immediate downside of the USD/CAD pair before the 100-DMA support of 1.3275.
In a case where the Loonie pair remains weak past 1.3275, the 61.8% Fibonacci retracement level of 1.3207, quickly followed by the 1.3200 round figure, could act as the last defense of the USD/CAD buyers, a break of which will make the pair vulnerable to plunging towards 1.3000 psychological magnet.
Overall, USD/CAD is likely to portray further upside but the 1.3610 is a crucial resistance to watch for the pair traders.
USD/CAD: Daily chart
Trend: Limited recovery expected