- USD/CAD struggles to extend three-day uptrend near the highest levels in three weeks.
- Break of two-month-old horizontal support, bearish MACD signals favor buyers.
- 50-DMA, seven-week-long descending trend line restrict immediate upside.
USD/CAD remains sidelined around 1.3585-90, recently picking up bids, as traders struggle with the key hurdle during early Wednesday morning in Asia. In doing so, the Loonie pair probes the three-day uptrend around a multi-day top marked the previous day.
Even so, the USD/CAD pair’s sustained trading beyond the previous key resistances and the 100-DMA joins the bullish MACD signals to keep the buyers hopeful.
That said, a downward-sloping trend line from October 13 and the 50-DMA restrict immediate USD/CAD moves between 1.3600 and 1.3580, a break of which could quickly propel the quote towards the monthly top near 1.3810.
However, multiple hurdles around 1.3840 and 1.3860 could challenge the USD/CAD bulls past 1.3810, which if ignored will highlight the yearly top marked in October surrounding 1.3980.
Alternatively, pullback moves remain elusive unless the quote stays beyond the horizontal support established since early October, near 1.3490 by the press time.
Following that, an upward-sloping trend line from August 11, currently at 1.3340, will precede the 100-DMA support of 1.3287 to challenge the USD/CAD bears.
Overall, USD/CAD is likely to remain firmer but the road to the north appears bumpy.
USD/CAD: Daily chart
Trend: Further upside expected