- USD/CAD bulls take a breather after rising to the highest since November 2020.
- Overbought RSI, monthly resistance line test further upside.
- Pullback remains elusive until staying beyond support-turned-resistance from August.
USD/CAD dribbles around an 18-month high as the bulls battle monthly hurdle during the initial Asian session on Tuesday.
The Loonie pair refreshed the multi-day top on Monday after crossing an upward sloping resistance line from August 2021. The upside momentum, however, failed to cross the one-month-old rising trend line amid nearly overbought RSI conditions.
Hence, the quote is likely to witness a pullback move towards the previous resistance line, around 1.2980, Though, any further downside won’t hesitate to drag the quote towards March’s high of 1.2909.
Even so, 10-DMA and an upward sloping support line from April 21, respectively around 1.2870 and 1.2790, could defend the USD/CAD bulls.
Meanwhile, the pair’s further upside needs a sustained run-up beyond the immediate resistance line, around 1.3030, to approach the 1.3100 threshold.
Following that, the late November 2020 tops near 1.3175 will lure the USD/CAD buyers.
USD/CAD: Daily chart
Trend: Pullback expected