USD/CAD Price Analysis: Stays on the way to seven-week-old hurdle above 1.2800
- USD/CAD remains on the front foot for the fourth day in a row.
- Sustained trading beyond 200-DMA, absence of overbought RSI on daily favor buyers.
- Key Fibonacci retracement levels add to the downside supports, 1.2830 acts as extra filter to yearly high.
USD/CAD takes the bids around 1.2718, up 0.22% intraday while flashing a four-day uptrend ahead of Thursday’s European session. In doing so, the quote reverses the previous day’s pullback after rising to the 13-day high.
The upside momentum gains support from 200-DMA and an upbeat RSI line, not oversold.
Hence, the USD/CAD buyers are geared for a north-run targeting the horizontal hurdle connecting levels marked since July 19, around 1.2810-15.
It should be observed that the RSI should turn overbought around the key resistance and hence the quote may witness a pullback afterward.
If not, then highs marked on August 19 and 23, near 1.2830, offer an extra challenge before witnessing the rally to the year’s high near 1.2950.
On the flip side, pullback moves could find it tough to prevail past 38.2% Fibonacci retracement (Fibo.) of June-August upside and 200-DMA, respectively near 1.2590 and 1.2525.
Also keeping the buyers hopeful is the 50% and 61.8% Fibo. levels surrounding 1.2480 and 1.2365 in that order.
USD/CAD: Daily chart
Trend: Further upside expected