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  • USD/CAD bulls gearing up for a test of 1.30, the 100-DMA.
  • Daily sticks charted a falling wedge breakout on Wednesday.
  • Recaptures 50-DMA with RSI trending in the green zone.

USD/CAD is accelerating Wednesday’s advance and remains poised to test the 1.30 barrier in the coming days amid a bullish technical setup.

Having confirmed a falling wedge breakout on the daily chart on Wednesday, the bullish momentum in the spot has gathered steam this Thursday, with the buyers now challenging December 27 highs at 1.2878 in a bid to regain 1.2900.

A test of the December 21 high at 1.2958 also remains in the offing should the bulls extend control.

With the 14-day Relative Strength Index (RSI) pointing northwards, the major remains primed for a further rally towards the downward-sloping 100-DMA at 1.3000.

The ongoing rally has taken out the bearish 50-daily moving average (DMA), now at 1.2804, which has formed solid support should any retracements occur on profit-taking.

The next fierce support awaits around 1.2730, where the pattern resistance now support coincides with the 21-DMA.

USD/CAD: Daily chart

USD/CAD: Additional levels