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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	1.3829
Today Daily Change	-0.0004
Today Daily Change %	-0.03%
Today daily open	1.3833

Trends
Daily SMA20	1.3552
Daily SMA50	1.3474
Daily SMA100	1.3502
Daily SMA200	1.3307

Levels
Previous Daily High	1.3837
Previous Daily Low	1.3753
Previous Weekly High	1.3659
Previous Weekly Low	1.3534
Previous Monthly High	1.3666
Previous Monthly Low	1.3262
Daily Fibonacci 38.2%	1.3805
Daily Fibonacci 61.8%	1.3785
Daily Pivot Point S1	1.3778
Daily Pivot Point S2	1.3723
Daily Pivot Point S3	1.3694
Daily Pivot Point R1	1.3863
Daily Pivot Point R2	1.3892
Daily Pivot Point R3	1.3947

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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