- USD/CAD moves in an upward channel since June 2.
- Pair looks for additional gains above 1.2450.
- Momentum oscillator reading indicates underlying bullish momentum.
USD/CAD edges higher on Monday in the Asian trading hours. The pair fell sharply from the high of 1.2556 on Friday and paused the fall near the support-turned-resistance level at 1.2450.
At the time of writing, USD/CAD is trading at 1.2457, up 0.11% for the day.
USD/CAD daily chart
On the daily chart, the USD/CAD pair failed to preserve the momentum after testing the high of 1.2590 on Thursday.
USD/CAD moves in a rising trend channel from the low of 1.2029 since the beginning of the previous month.
If price sustains above intraday’s session at 1.2461, then it could test 1.2500 horizontal resistance level followed by the previous day’s high at 1.2556.
The Relative Strength Index (RSI) trades above 50, which indicates underlying bullish sentiment in the pair.
That said, the bulls would keep their eye on the 1.2600 key psychological mark.
Alternatively, if price reverses, then it could test the 1.2410 horizontal support level.
A daily close below the 1.2400 mark, which is the lower trendline of the mentioned channel, would amplify the selling opportunities toward the 1.2370 horizontal support level.
Next, the bears would retest the July 6 low at 1.2303.
