USD/CAD Price Analysis: Bulls approach 1.3690 hurdle
- USD/CAD picks up bids to refresh intraday high, extends Friday’s run-up.
- Impending bull cross on MACD, firmer RSI keeps buyers hopeful.
- Five-week-old descending resistance line challenges buyers, weekly support line limits immediate downside.
USD/CAD stays on the front foot around 1.3675, refreshing intraday high while extending the previous day’s run-up during early Monday.
In doing so, the Loonie pair stretches the latest rebound from a one-week-old ascending trend line as MACD signals tease bulls. That said, the recently firmer RSI (14) also keeps the buyers hopeful as the quote approaches a downward-sloping resistance line from early November.
In a case where the USD/CAD bulls successfully cross the aforementioned resistance line, around 1.3690 by the press time, the monthly high near 1.3700 could act as an extra upside filter before directing the upside towards the previous monthly peak near 1.3810.
It’s worth noting that multiple hurdles near the 1.3900 round figure and 1.3950 could challenge the USD/CAD pair’s upside past 1.3810, a break of which won’t hesitate to challenge the yearly high marked in October near 1.3980, as well as aim for the 1.4000 psychological magnet.
On the contrary, a downside break of the aforementioned weekly support line, near 1.3620 at the latest, becomes necessary to recall the USD/CAD bears.
Even so, the 50% Fibonacci retracement level of the pair’s November 03-15 downside, close to 1.3515, as well as the 200-SMA level of 1.3480, could challenge the pair’s further downside.
USD/CAD: Four-hour chart
Trend: Further upside expected