The US Dollar to Canadian Dollar (USD/CAD) exchange rate is on the rise, currently trading at its highest level in a month, and is bracing for its biggest weekly gains since early December 2022. The bullish momentum has been driven by a successful break of key resistance lines, and the 200-SMA pointing bulls towards the 61.8% Fibonacci retracement level.
At the time of writing, USD/CAD is trading at 1.3490, up 0.24% from the open. The pair is up for the fourth consecutive day and is preparing for the biggest weekly run-up since early December 2022. The upside break of a 12-day-old ascending trend line and one-month-old resistance line, now support, has been encouraging for USD/CAD bulls. Furthermore, the pair’s successful trading above the 200-SMA has been a positive sign for the bulls.
The technical breakouts and bullish MACD signals suggest that the USD/CAD pair is well-set to poke the mid-January swing high at 1.3520. This level is also the 61.8% Fibonacci retracement level of the pair’s January-February downturn. If the bulls remain in control past 1.3520, the 1.3600 round figure may act as an intermediate halt before highlighting the previous monthly high of 1.3685.
On the downside, the 12-day-old previous resistance line and a downward-sloping trend line from January 19 may put a floor under the USD/CAD prices of around 1.3480 and 1.3455 in that order. Additionally, the 200-SMA and an ascending support line from Tuesday, respectively near 1.3400 and 1.3390, could act as the last defense of the USD/CAD buyers.
Looking at the four-hour chart, the trend in USD/CAD remains bullish, and further upside is expected in the near-term. The pair is trading above the 200-SMA and the MACD is in the positive territory, suggesting that the bulls are likely to remain in control. The immediate resistance is seen at 1.3520, the mid-January swing high and the 61.8% Fibonacci retracement level. A successful break above this level could open the doors for a further rally towards the 1.3600 round figure.
On the other hand, the immediate support is seen at 1.3480, the 12-day-old previous resistance line. A break below this level could put the bears back in control and push the pair towards the 1.3455 support. The 200-SMA and an ascending support line from Tuesday, respectively near 1.3400 and 1.3390, could act as the last defense of the USD/CAD buyers.
In conclusion, the USD/CAD pair is on the rise, currently trading at its highest level in a month, and is bracing for its biggest weekly gains since early December 2022. The bullish momentum has been driven by a successful break of key resistance lines, and the 200-SMA pointing bulls towards the 61.8% Fibonacci retracement level. The technical breakouts and bullish MACD signals suggest that the USD/CAD pair is well-set to poke the mid-January swing high at 1.3520. On the downside, the 12-day-old previous resistance line and a downward-sloping trend line from January 19 may put a floor under the USD/CAD prices of around 1.3480 and 1.3455 in that order. Looking at the four-hour chart, the trend in USD/CAD remains bullish, and further upside is expected in the near-term.
