USD/CAD maintains Monday’s recovery from the 10-day EMA.
Since March 18, multiple levels have restricted immediate gains ahead of a five-month-old resistance line.
The bounce off the short-term major moving average is strengthened by the bullish MACD, and the monthly support line presents an additional obstacle to sellers.
Buyers pounced on the upper end of an immediate trading range, reviving intraday highs and adding 0.06 percent to its early Tuesday bounce off the 10-day EMA.
Bullish MACD indications and an upward sloping support line from June 1 also favor purchasers of the Loonie pair.
As a result, USD/CAD is poised to test the 1.2351-65 resistance region, but a breakout appears unlikely.
If the bulls manage to break beyond 1.2365, the focus will shift to a declining resistance line from January 28 near 1.2465.
On the other hand, for short-term sellers to enter, a daily close below the 10-day EMA level of 1.2300 is required. Following that, the monthly support line near 1.2190 may be tested by bears aiming for the multi-day low under the 1.2000 threshold, which was seen earlier in June.
Overall, the USD/CAD has regained its upward impetus, although bulls have a difficult journey to the north.

Expect more gains in the future.
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