- USD/CAD bounces off 1.3245 to extend Friday’s run-up.
- Bullish MACD, pullback from multi-week low favor the buyers.
- 100-HMA, one-week-old falling trend line restricts immediate upside.
USD/CAD rises to 1.3260 amid the initial Asian trading on Monday. In doing so, the Loonie pair keeps Friday’s gains that marked the pair’s recovery from 6.5-month low flashed on Thursday.
Considering the bullish MACD and pair’s pullback from the multi-week bottom, the USD/CAD prices are likely to stretch the latest pullback moves. Though, a confluence of 100-HMA and a falling trend line from August 10 restricts the pair’s immediate upside around 1.3270/75.
Following the pair’s likely upside break of 1.3275, the 1.3300 round-figures might offer an intermediate halt during the run-up to August 12 high that surrounds 1.3345/50 area. Also acting as an important resistance will be the 61.8% Fibonacci retracement of the pair’s declines from July 30 to August 13, near 1.3360, followed by August 07 peak near 1.3800.
Meanwhile, the pair’s failures to cross 1.3275 can recall the bears if the quote drops below 1.3230 nearby support.
In doing so, 1.3200 and the latest low, also the lowest since January 30, around 1.3190 will be crucial to watch as a downside break of which can push the bears toward the 1.3000 threshold.
USD/CAD hourly chart
Trend: Further recovery expected