- USD/CAD edges higher around three-week top, keeps 50-day SMA breakout.
- Descending trend line from March stops buyers on the way to May’s high.
- Previous double tops add to the downside filters below nearby SMA.
- Upbeat RSI, clear SMA break favor bulls, March’s low will the key resistance.
USD/CAD buyers take a breather around 1.2275-80 amid early Thursday, after posting the heaviest jump in four months the previous day. In doing so, the Loonie pair bulls struggle to overcome the descending trend line resistance from March 16.
Even so, a clear break of 50-day SMA and strong RSI conditions signal the pair’s further upside towards the 1.2300 threshold.
In addition to the 1.2300 round-figure, the previous month’s top surrounding 1.2350 also acts as the near-term resistance. However, USD/CAD bulls are more likely to be challenged by late March 18 low near 1.2365 during any further upside.
Meanwhile, pullback moves may bounce off the 50-day SMA level of 1.2235 and can keep USD/CAD buyers hopeful unless declining back below the monthly horizontal support, prior resistance, around the 1.2200 round figure.
Should the quote remains pressured below 1.2200, the downward trajectory will attack the monthly rising trend line near 1.2110.
USD/CAD daily chart
Trend: Further upside expected