- Loonie bulls are firmly defending the 50% Fibo retracement at 12652.
- The RSI (14) is expected to face resistance at 60.00.
- The greenback bulls are still hopeful amid ascending 21- and 50-period EMAs.
The USD/CAD pair witnessed a bullish open-drive session on early Monday amid strength in the US dollar index (DXY). Right from the first opening tick at 1.2615, the asset is scaling higher and has made an intraday high of 1.2643.
On a four-hour scale, loonie bulls are defending the 50% Fibonacci retracement (placed from March’s high at 1.2900 to April’s low at 1.2403) at 1.2652. The pair has developed a supply area near the 50% Fibo retracement in a narrow range of 1.2643-1.2676 due to multiple failed attempts of establishment above the 1.2650.
The 21- and 50-period Exponential Moving Averages (EMAs) at 1.2610 and 1.2593 respectively are scaling higher, which signals more gains ahead.
Meanwhile, the Relative Strength Index (RSI) (14) is facing resistance near 60.00 levels, which signals a bearish reversal. However, overstepping the 60.00 will infuse fresh blood in the greenback bulls.
Going forward, greenback bulls may take the charge if the asset overstep Wednesday’s high at 1.2676, which will send the asset towards March 17 high at 1.2699. A breach of the March 17 high will drive the asset towards the March 16 high at 1.2778.
On the contrary, a drop below March’s last traded price at 1.2503 will drag the asset towards January’s low at 1.2451, followed by the round level support of 1.2400.
USD/CAD four-hour chart
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