- USD/CAD seesaws in the European trading session.
- Bulls keep up the effort to scale above 1.2120.
- Momentum oscillator holds onto positive trajectory.
The USD/CAD pair moves back-forth on Thursday in the European trading hours. The pair continues to consolidate below the 1.2120 mark. As of writing, USD/CAD trades at 1.2113, up 0.03% for the day.
USD/CAD 4-hour chart
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On the 4-hour chart, the USD/CAD pair has been moving in a broader upside trading channel, while consolidating near the 1.2120 area. The ascending channel extends from the lows of 1.2007.
The pair seeks more upside if price decisively breaks the session’s high at 1.2123. USD/CAD bulls then aim for the 1.2140 horizontal resistance level. The 1.2140 level is a key psychological mark with multiple top formations, which makes it a critical level to trade.
The Moving Average Convergence Divergence (MACD) indicator reads above the midline with a bullish crossover. Any uptick in the MACD would prompt USD bulls to flex their muscle toward the levels last seen in April.
The next hurdle could be located at the 1.2160 horizontal resistance level followed by the April 14 high in the vicinity of the 1.2180 area.
Alternatively, if price moves lower, then it could be traced back to the 1.2100 and 1.2080 horizontal support levels.
Market participants would then try to retest the low of June 7 at 1.2057.