USD/CAD Price Analysis: Weekly bearish channel prods Loonie pair buyers above 1.3300
- USD/CAD picks up bids to extend the previous day’s rebound from 4.5-month low.
- Short-term descending trend channel joins sluggish MACD, RSI to prod Loonie pair buyers.
- 50-SMA, support-turned-resistance line from mid-April also challenge upside moves.
- Bears need to conquer 1.3265-60 support confluence for retaking control.
USD/CAD renews its intraday high near 1.3340 as it extends post-Fed recovery from the multi-day low early Thursday.
In doing so, the Loonie pair stretches the previous day’s bound from the lower line of a descending trend channel established on June 05. Adding strength to the run-up are the mostly upbeat MACD signals and near 50.0 levels of the RSI (14) line.
It’s worth noting, however, that the stated bullish channel’s top line, around 1.3350 by the press time, challenges the USD/CAD pair’s further advances.
Following that, the 50-SMA and a two-month-old previous support line, respectively near 1.3365 and 1.3390, closely followed by the 1.3400 round figure, will act as final defenses of the USD/CAD bears.
Alternatively, the 1.3300 round figure acts as immediate support for the USD/CAD pair ahead of the aforementioned descending trend channel’s bottom line, close to 1.3265 at the latest.
It should be noted that the yearly low of around 1.3260 offers an additional downside filter ahead of directing the USD/CAD bears to the November 2022 low of near 1.3225.
USD/CAD: Daily chart
Trend: Pullback expected