- USD/CAD picks up bids to reverse the previous day’s pullback from six-week high.
- Sustained trading beyond key moving averages, support lines favor buyers.
- Sellers need validation from 1.2900 to retake control.
USD/CAD renews intraday top near 1.3025 as it rebounds from the 50-HMA to consolidate the week-start losses around a 1.5-month high. That said, the Loonie pair’s recovery moves also take clues from the MACD signals.
Given the looming bull cross of the MACD line to the signal line, as well as the bounce off the key HMA, USD/CAD may witness further upside.
However, a one-week-old upward sloping resistance line, near 1.3080 by the press time, could test the advances before highlighting the 1.6100 threshold.
Following that, 1.3130 and the 1.3200 round figures may entertain USD/CAD bulls before directing them to the yearly high near 1.3240.
Alternatively, pullback moves may initially test the 50-HMA support level of the 1.3000 threshold.
Even if the quote drops below the 1.3000 mark, the convergence of the 100-HMA and the 200-HMA, near 1.2980, will challenge the USD/CAD bears.
It’s worth noting that ascending support lines from August 11 and 17, respectively around 1.2940 and 1.2925, appear the key challenges for the pair sellers to watch past 1.2980. Additionally, the 1.2900 round figure appears the last defense of the pair buyers.
USD/CAD: Hourly 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.
