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USD/CAD Price Analysis: Loonie Buyers Assault The 100-Sma Near The Middle Of 1.3200
After reaching its greatest level in five weeks, the USD/CAD exchange rate approaches its highest levels in the past two weeks. The overbought RSI and 100-SMA encourage Loonie pair investors during a sluggish session. Bullish MACD signals, a previous resistance breach to the upside, and a rising support line since Tuesday restore an upside bias.
Despite Thursday's early Asian session inactivity around 1.3250, the USD/CAD continues to trade at a two-week high. The previous day, however, the Loonie pair surged the most in five weeks after crossing a June resistance line with a downward slope. However, the overbought RSI (14) line and the 100-day simple moving average appear to be challenging purchasers as of late.
Nonetheless, a sustained upside break of the multi-day-old resistance line, which is now support around 1.3210, joins the bullish MACD signals and the pair's successful trading beyond the rising support line from Tuesday, near 1.3240 at the latest, keeps USD/CAD buyers optimistic.
With this, the Loonie-U.S. Dollar pair is anticipated to surpass the immediate 100-SMA barrier near 1.3260 while aiming for the early-May swing low near 1.3315.
It should be noted, however, that a convergence of the 200-day simple moving average (SMA) and the 50% Fibonacci retracement of the USD/CAD pair's April-June decline, near 1.3390, appears a difficult obstacle for investors to overcome thereafter.
In contrast, for the USD/CAD bears to return, a break below the immediate support line and the resistance-turned-support trend line near 1.3240 and 1.3210 is required.
The market will then focus on the yearly low marked earlier in the week around 1.3120 and the psychological magnet at 1.3000.
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