USDCAD bulls attack five-month-old resistance
USDCAD posted the highest daily close of 2021 on Friday, bouncing off 10-day EMA. However, an upward sloping trend line from July challenges the pair buyers amid nearly overbought RSI conditions, teasing a pullback. Should the 10-day EMA level of 1.2790 fails to trigger another bounce, a downward trajectory towards 50-day EMA near 1.2650 can’t be ruled out. During the quote’s weakness past 1.2650, June’s high and 50% Fibonacci retracement of June-August upside, around 1.2470, will be an important level to watch.
Meanwhile, a clear upside break of the stated resistance line near 1.2900 will aim for the yearly top of 1.2948 and the 1.3000 psychological magnet. Though, RSI conditions may challenge the USDCAD buyers then after. If not, then November 2020 peak close to 1.3130 should return to the charts. To sum up, USDCAD bulls seem to have tired of late, which in turn suggests consolidation of the latest gains but the trend reversal is far away.
Meanwhile, a clear upside break of the stated resistance line near 1.2900 will aim for the yearly top of 1.2948 and the 1.3000 psychological magnet. Though, RSI conditions may challenge the USDCAD buyers then after. If not, then November 2020 peak close to 1.3130 should return to the charts. To sum up, USDCAD bulls seem to have tired of late, which in turn suggests consolidation of the latest gains but the trend reversal is far away.