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USD/CAD Justifies Dragonfly Doji Candlestick To Rebound Off Key Support Line Toward 1.3400
After recovering from a six-month-old ascending support line, USD/CAD continues higher. Formation of bullish candlesticks and nearly oversold RSI (14) bolster recovery movements. 200-DMA encourages Loonie pair investors; bears need confirmation from 1.3300 to maintain control.
In the early hours of Tuesday, USD/CAD oscillates between 1.3370 and 1.3380 as it struggles to defend the previous day's corrective rebound off the key short-term support line. In doing so, the Loonie pair validates Monday's bullish candlestick as well as the nearly oversold RSI (14) conditions.
Even with the USD/CAD pair's recent inactivity, the Loonie pair remains off the bear's radar, particularly after posting a Dragonfly bullish Doji candlestick the day before and recovering from an upwardly sloping support line from November 2022.
Consequently, a decline in the quotation remains elusive unless it breaks the aforementioned support line, which is presently around 1.3315. Also serving as a negative filter is the round number 1.3300.
Before the USD/CAD bears can gain control, it is important to note that February's low is around 1.3265, and the late 2022 nadir is around 1.3240.
In contrast, the latest rebound in the Loonie-U.S. dollar pair may target the 200-day moving average around 1.3450. However, the investors will require confirmation from the 100-DMA level near 1.3520 in order to target the previous monthly high near 1.3670.
In the event that the USD/CAD remains stronger than 1.3670, a rally toward the yearly high near 1.3860 cannot be ruled out.
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