- USD/CAD remains sidelined after refreshing five-week high, probes four-day uptrend.
- Successful break of one-month-old ascending trend line, bullish MACD signals favor buyers.
- Bears stay off the table unless breaking 200-DMA support.
USD/CAD remains sidelined around the monthly high surrounding mid-1.3000s as bulls take a breather after a four-day uptrend to the initial Asian session on Tuesday. Even so, the Loonie pair holds onto the previous day’s upside break of an ascending resistance line from July 25, now support near 1.3030.
In addition to the successful break of the monthly resistance line, bullish MACD signals also keep USD/CAD buyers hopeful.
However, multiple tops marked between early May and early July, around 1.3080-85, offer strong resistance to the bulls.
In a case where the quote rises past 1.3085, the 1.3135 mark may act as an intermediate halt before fueling prices the USD/CAD prices towards the yearly peak of 1.3223.
Alternatively, pullback remains elusive until the quote stays beyond the aforementioned resistance-turned-support near 1.3030. Also acting as an immediate downside filter is the 1.3000 psychological magnet.
It’s worth noting that multiple levels around 1.2935-30 and the 1.2800 threshold could lure USD/CAD bears past 1.3000. Even so, the pair sellers should remain cautious unless witnessing a clear break of the 200-DMA support of 1.2760.
USD/CAD: Daily chart
Trend: Further upside expected