- USD/CAD extends previous day’s gains as US and Canada jostle over Aluminum tariffs.
- A short-term ascending trend channel keeps the buyers hopeful.
- 100-HMA adds strength to the channel’s resistance line.
USD/CAD rises to 1.3321, up 0.16% on a day, during the early Asian session on Friday. The pair bounced off the lowest since February on Thursday. However, it’s the US announcement of re-imposing aluminum tariffs on Canada that favors the pair’s recent upside.
While portraying the same, the loonie pair follows and ascending trend channel formation that directs the bulls towards 1.3335/40 area comprising the channel’s upper line and 100-HMA.
If bulls manage to keep the upside beyond 1.3340, 61.8% Fibonacci retracement of August 03-05 upside near 1.3370 can offer an intermediate halt during the rise to 1.3420.
Meanwhile, a downside break of 1.3285 mark including the channel’s support and 23.6% Fibonacci retracement could again attack February month’s low of 1.3202.
USD/CAD hourly chart
Trend: Pullback expected
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