USD/CAD Price Analysis: Bulls attack weekly resistance line around 1

USD/CAD Price Analysis: Bulls attack weekly resistance line around 1.2650

  • USD/CAD extends bounce off six-week-old horizontal support.
  • Upbeat RSI conditions pushes bulls towards 200-bar SMA.
  • February’s multi-month low will lure the bears below the key support.

USD/CAD picks up bids around 1.2657, up 0.10% intraday, during Thursday’s Asian session. In doing so, the quote battles a downward sloping trend line from Monday while stretching bounce off a horizontal support area established since January 21.

Given the absence of overbought RSI conditions, coupled with the sustained recovery from key support, USD/CAD is up for extending the latest run-up beyond the immediate 1.2660 hurdle.

Following that, the USD/CAD bulls will again try to cross the 200-bar SMA, at 1.2702 now, while eyeing the 1.2760-65 resistance area.

Alternatively, a pullback from the current levels needs to provide a decisive break below the stated support-zone near 1.2610-2600 to recall the USD/CAD sellers.

It should, however, be noted that the quote’s weakness past-1.2600 will not hesitate to challenge the multi-month low marked in February, around 1.2470.

USD/CAD four-hour chart

USD CAD 04032021 637504096457764321

Trend: Further upside expected

Credit: FX Street

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