- USD/CAD keeps Monday’s recovery moves from 10-day EMA.
- Multiple levels since March 18 restrict immediate upside ahead of five-month-old resistance line.
- Bullish MACD adds strength to the bounce off short-term key moving average, monthly support line offers an extra challenge to sellers.
USD/CAD buyers attack the upper end of an immediate trading range, refreshing intraday high, as adding 0.06% to its bounce off 10-day EMA during early Tuesday.
Also favoring the Loonie pair buyers are the bullish MACD signals and an upward sloping support line from June 01.
Hence, USD/CAD is all set to confront the 1.2351-65 resistance area but a breakout seems difficult afterward.
If at all the bulls manage to cross the 1.2365, a descending resistance line from January 28, near 1.2465, will be in focus.
On the flip side, a daily closing below the 10-day EMA level of 1.2300 becomes necessary for the short-term sellers’ entry. Following that, the monthly support line near 1.2190 may test the bears targeting the multi-day low, flashed earlier in June, surrounding the 1.2000 threshold.
Overall, USD/CAD regains upside momentum but bulls have a bumpy road to the north.
USD/CAD daily chart
Trend: Further upside expected