- USD/CAD steps back from intraday high, stays mildly bid.
- Strong RSI, sustained trading beyond one-month-old rising support line keeps buyers hopeful.
- Bears have to conquer six-week-old support, a three-week-long horizontal line adds to the upside filters.
USD/CAD bulls take a breather around 1.2535, up 0.18% intraday, ahead of Monday’s European session. In doing so, the Loonie pair struggles to overcome a downward sloping trend line from July 19.
It should be noted, however, that the upside RSI line and the pair’s ability to stay beyond an ascending support line from July-end favor the buyers.
Though, a slightly downward sloping trend line from July 23, near 1.2585, adds to the upside filters.
In a case where USD/CAD bulls manage to overcome the 1.2585 hurdle, the 1.2675 and 1.2730 may offer intermediate halts during the quote’s rally targeting July’s peak near 1.2810.
Meanwhile, pullback moves will be considered less important until staying beyond the stated support line, around 1.2510, as well as the 1.2500 round–figure.
During the USD/CAD weakness past 1.2500, horizontal support from early July, near 1.2425-20 and 1.2355 may test the bears ahead of directing them to the last month’s low near 1.2300.
USD/CAD: Four-hour chart
Trend: Further upside expected
