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  • Sustained break of near-term resistance-line required to please buyers.
  • 1.3375 could restrict immediate declines.

USD/CAD is taking the rounds near 1.3440 on early Thursday. The pair has been confined by a week-long descending trend-line.

Considering comparative weakness of the Canadian Dollar (CAD), a sustained break of 1.3460 resistance-line can trigger the pair’s rally towards 1.3485/90 and then to recent highs around 1.3520.

However, 61.8% Fibonacci expansion of March 19 to May 01 moves, at 1.3545, could challenge an additional upside.

Meanwhile, 1.3400 and recent lows near 1.3375 seem nearby supports to the pair, a break of which can recall 1.3340 and 1.3300 on the chart.

It should also be noted that sustained downturn under 1.3300 can divert bears toward 1.3250/40 support-zone.

USD/CAD 4-Hour chart

Trend: Pullback expected