Since June 2, the USD/CAD has been moving in an upward channel.
Above 1.2450, the pair is looking for more gains.
The reading of the momentum oscillator indicates underlying bullish momentum.
During Asian trading hours on Monday, the US dollar edged higher against the Canadian dollar. The pair dropped sharply from Friday’s high of 1.2556 and paused near the 1.2450 support-turned-resistance level.
The USD/CAD currency pair is currently trading at 1.2457, up 0.11 percent on the day.
The USD/CAD pair failed to maintain momentum on the daily chart after testing the high of 1.2590 on Thursday.
Since the beginning of the previous month, the USD/CAD has been moving in a rising trend channel from a low of 1.2029.
If price remains above the intraday session high of 1.2461, it may test the 1.2500 horizontal resistance level before testing the previous day’s high of 1.2556.
The Relative Strength Index (RSI) is above 50, indicating that the pair has underlying bullish sentiment.
The bulls, on the other hand, would keep an eye on the psychological level of 1.2600.
If price moves in the opposite direction, it could test the 1.2410 horizontal support level.
A daily close below the 1.2400 mark, which is the channel’s lower trendline, would increase selling opportunities towards the 1.2370 horizontal support level.
The bears would then attempt a retest of the July 6 low of 1.2303./n
