- USD/CAD trades higher in the Asian session on Thursday.
- Additional gains for the pair if price decisively breaks 1.2600.
- Momentum oscillator holds onto the overbought zone with a bearish stance.
USD/CAD accumulates minor gains in the Asian trading session. The pair hovers in a very narrow trade band with a positive bias.
At the time of writing, USD/CAD is trading at 1.2599, up 0.07% for the day.
USD/CAD daily chart
-637655373007360032.png)
On the daily chart, the USD/CAD pair has been under corrective mode after testing the high of 1.2949 on August 20. USD/CAD met some support near the 20-day Simple Moving Average (SMA) at 1.2585.
If price is sustained above the intraday high, it could break move back to the previous day’s high of 1.2643.
Being said, USD/CAD bulls would further be encouraged to testify the 1.2720 horizontal resistance level followed by the August 23 high of 1.2833.
Alternatively, the Moving Average Convergence Divergence (MACD) indicator holds onto the positive territory but with receding momentum. Any downtick would amplify the selling pressure toward the low August 17 at 1.2569.
A break and daily close below the mentioned level would further encouraged the bears to testify the 1.2510 horizontal support level.
As price approaches toward the 1.2500 mark, a close below this level would mean an August 2 low of 1.2453 for bears.