Home USD/CAD Price Analysis: Buyers target multi-day-old resistance line above 1.3600
FXStreet News

USD/CAD Price Analysis: Buyers target multi-day-old resistance line above 1.3600

  • USD/CAD takes the bids near four-day top following Tuesday’s recovery moves.
  • A downward sloping trend line from May 22 in the spotlight, 200-day SMA offers strong support.
  • Normal RSI conditions, bullish MACD favor further upside.

USD/CAD rises to 1.3610 amid the initial Asian session on Wednesday. In doing so, the pair escalates Tuesday’s pullback from 1.3525 to print a four-day top. Even so, a seven-week-old descending trend line seems to challenge the bulls.

That said, the pair’s latest up-moves should have taken clues from the Globe and Mail’s news suggesting that Finance Minister Bill Morneau will forecast a deficit in excess of $300-billion today.

Turning back to technicals, upbeat RSI conditions and MACD adds to the bullish sentiment that signals a break of 1.3625 mark comprising the said resistance line. However, June 26 top near 1.3715 might question the bulls afterward.

On the flip side, the 200-day SMA level of 1.3500 holds the key to the pair’s south-run towards 1.3430.

In a case where the sellers remain dominant past-1.3430, June month’s low of 1.3315 could become their favorite.

USD/CAD daily chart

Trend: Further recovery expected

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.