- USD/CAD struggles to extend the previous day’s rebound from seven-week low.
- One-week-old descending resistance line challenge Loonie pair buyers.
- Bullish MACD signals, RSI recovery from oversold territory facilitate upside momentum.
USD/CAD picks up bids to refresh intraday high near 1.3455 as bulls poke a downward-sloping resistance line from the previous Tuesday.
Adding strength to the recovery moves are the bullish MACD signals and the RSI (14) recovery from the oversold territory, which in turn suggests a continuation of the latest rebound.
With this, the Loonie pair buyers are ready to break the immediate hurdle surrounding 1.3460.
Following that, the 61.8% Fibonacci retracement level of February-March upside, near 1.3490 and the 1.3500 round figure could challenge USD/CAD buyers.
In a case where the Loonie pair remains firmer past 1.3500, it can quickly jump to the 50% Fibonacci retracement level of around 1.3560. However, a convergence of the previous support line from early February and the 200-SMA, around 1.3635 at the latest, appears a tough nut to crack for the USD/USD bulls afterward.
On the flip side, the recent low of 1.3405 and the 1.3400 round figure can join the downbeat RSI conditions to challenge the intraday sellers of the USD/CAD pair.
Also acting as the near-term downside filters are the multiple lows marked during early February around 1.3380 and 1.3320.
It’s worth noting that the Year-To-Date low marked in February near 1.3265 acts as the last defense of the USD/CAD buyers
USD/CAD: Four-hour chart
Trend: Further recovery expected
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