USD/CAD Price Analysis: On the bids above 1.2600, 10-DMA guards immediate upside
- USD/CAD refreshing intraday high after bouncing off three-month-old support.
- Firmer RSI directs buyers towards 10-DMA before a bumpy road to yearly high.
- 200-DMA, horizontal line from late June add to the downside filters.
USD/CAD prints the biggest daily gains in a week, up 0.25% intraday around 1.2622 ahead of Thursday’s European session.
Although failures to cross 10-DMA dragged the quote to an ascending support line from June 01, firmer RSI and successful trading beyond 200-DMA, not to forget firmer fundamentals surrounding greenback, keeps the pair buyers hopeful.
Hence, the quote’s another battle with the 10-DMA level of 1.2650 becomes imminent.
However, July 20 lows near the 1.2680 threshold and a five-week-long horizontal resistance line near 1.2810 will challenge the USD/CAD bulls before pleasing them with the monthly low, also the 2021 top, near 1.2950. It’s worth mentioning that the 1.2835-40 area may also contribute towards making the buyer’s reign worrisome.
Alternatively, a daily closing below the stated support line, near 1.2585, will drag the quote to the 200-DMA level of 1.2545.
In a case where the USD/CAD bears keep reins past 1.2545, June high and August 11 low, near 1.2490 will precede July 30 bottom close to 1.2420 to gain the market’s attention.
USD/CAD: Daily chart
Trend: Further upside expected
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.
