USD/CAD Price Analysis: Bulls hit the wall above 1.3800 within rising trend channel
- USD/CAD seesaws around the top line of a one-month-old bullish channel.
- Clear upside break of the multi-day-old horizontal resistance, upbeat MACD signals favor buyers.
- 100-DMA, ascending trend line from last November act as the key supports.
USD/CAD traces dicey markets as it makes rounds to 1.3825-35 during early Friday.
In doing so, the Loonie pair buyers struggle to cheer the previous day’s upside break of an important horizontal resistance area comprising multiple tops marked since late September 2022. The reason could be linked to the overbought RSI (14), as well as the cautious mood ahead of the key US and Canada employment report for February.
Also read: USD/CAD retreats towards 1.3800 as Oil bears take a breather, US/Canada employment data eyed
That said, the USD/CAD dribbles near the top line of a one-month-old ascending trend channel, close to 1.3860 by the press time, as the bullish MACD signals join the previous day’s clear break of the key upside hurdle surrounding 1.3805-15.
As a result, the bulls are likely to keep the reins and may overcome the immediate 1.3860 hurdle, however, the tops marked during October 14 and 17 of the last year, near 1.3885, as well as the 1.3900 threshold, could challenge the pair’s further upside.
In a case where the USD/CAD price remains firmer past 1.3900, the previous yearly high surrounding 1.3980 and the 1.4000 psychological magnet will be in focus.
On the contrary, bears remain off the table unless the USD/CAD price remains within the stated channel, currently between 1.3650 and 1.3860. It should be observed that the aforementioned horizontal resistance-turned-support near 1.3805-15 and the 1.3800 round figure limits the quote’s immediate downside
Even if the USD/CAD bears manage to conquer the 1.3650 support, the 100-DMA and a four-month-old ascending trend line, respectively near 1.3500 and 1.3280, will be crucial for them to watch.
USD/CAD: Daily chart
Trend: Limited upside expected