USD/CAD Price Analysis: Eases from three-week top above 1.3200

  • USD/CAD consolidates the biggest gains in three months while stepping back from 1.3257, the August 17 high.
  • Normal RSI conditions and a sustained break of six-month-old resistance line, now support, favor the buyers.
  • 1.3045/40 area adds to the downside barriers for the sellers.

USD/CAD drops to 1.3233 during the early Wednesday morning in Asia. The loonie pair surged the most since June 11 the previous day after breaking a downward sloping trend line from March 19. The up-move gains support from RSI strength under the manageable limit, which in turn suggests the quote’s further rise.

In doing so, the 1.3310/15 region including 50-day EMA and June month’s low gains the traders’ attention ahead of the previous month’s peak near 1.3450.

It’s worth mentioning that the pair’s run-up beyond 1.3450 will be questioned by June 23 bottom close to 1.3485 whereas August 07 high near 1.3400 also acts like an upside barrier.

Meanwhile, the pair’s fresh declines below the previous resistance, at 1.3146 now, may take rest near 1.3100 round figures before revisiting the 1.3045/40 support zone.

Additionally, the bears will have the 1.3000 psychological magnet and the yearly trough surrounding 1.2960 as extra challenges to clear.

USD/CAD daily chart

Trend: Bullish

 

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