- USD/CAD stays on the front foot following its break of the one-month-old falling trend line, 10-day SMA.
- MACD also turns the most bullish in seven weeks.
- Sellers may wait for a daily close below 1.3040 for fresh entries.
USD/CAD takes the bids near 1.3140, up 0.10% on a day, as markets in Tokyo open for Friday’s trading. The Loonie pair marked the heaviest gains since late-June the previous day while closing beyond a downward sloping trend line from August 10 and 10-day SMA.
Also portraying the strength of the upside momentum could be the strongest MACD histogram since July 17.
Hence, buyers are targeting a 21-day SMA level of 1.3186 during the further upside ahead of confronting the 1.3240/45 resistance zone comprising the late-August tops.
In a case where the bulls keep the reins after 1.3245, odds of witnessing the July month’s low near 1.3330 back to the chart can’t be ruled out.
Alternatively, a daily closing below 10-day SMA, at 1.3119 now, can please sellers with the 1.3100 threshold.
However, the pair’s further downside will be questioned by 1.3050 and the latest multi-month low around 1.3000 psychological magnet.
USD/CAD daily chart
Trend: Bullish
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