USD/CAD Price Analysis: Flirts with monthly resistance line above 1.3200

  • USD/CAD keeps upside break of 50-day SMA despite failing to cross a short-term resistance line the previous day.
  • The absence of extreme RSI conditions favors the continuation of recovery moves from 1.3099.

USD/CAD picks up bids near 1.3225, up 0.05% intraday, during Friday’s Asian session. The loonie pair crossed the 50-day SMA for the first time in a week on Thursday. However, a daily closing beyond a falling trend line from September 30 isn’t yet provided to welcome the bulls.

Considering the normal RSI conditions and the pair’s ability to stay beyond 50-day SMA, the buyers are likely to cross the immediate resistance line near 1.3235-40.

Although the monthly high of 1.3340 will lure the USD/CAD bulls after 1.3240, the 1.3300 round-figure can offer an intermediate halt during the rise.

Also acting as the key upside barrier is the September month’s high near 1.3420 as well as 61.8% Fibonacci retracement of the pair’s June-September downside, close to 1.3440.

Meanwhile, a downside break of 50-day SMA, currently around 1.3210 can attack the 1.3200 threshold before targeting 1.3130 and the current month’s low near 1.3100.

USD/CAD daily chart

Trend: Further recovery expected

 

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