The USD/CAD currency pair recovers early Asian losses to reclaim the 1.2500 level.
Within the monthly rising channel, weekly horizontal resistance tests short-term buyers.
The 100-SMA and a one-week-old support line operate as quick downward filters.
BOC can extend tapering to test the upside if the MACD is bullish.
USD/CAD recovers from its first Asian losses of the week, rising to 1.2510 ahead of Wednesday’s European session. As a result, the Loonie pair is aiming for a short-term horizontal barrier within a one-month-long rising channel bullish pattern once more.
Given the positive MACD and the fact that the BOC’s extended tapering has already been priced in, the pair prices may remain firmer after the central bank statements.
In the event of a surprise, intraday sellers may be enticed by a nearby support line near 1.2470 and the 100-SMA near 1.2445. Any further weakness will, however, be tested by the lower line of the mentioned channel, which is located around 1.2380.
If the USD/CAD bears ever gain control over 1.2380, the late-June swing bottom near 1.2250 should reappear on the charts.
A breach of the adjacent barrier of 1.2520-25 to the upside, on the other hand, will accelerate the quote towards the channel’s resistance line near 1.2620.
The monthly high near 1.2590 and the 1.2600 may serve as intermediate halts during the rally, while USD/CAD bulls can aim for April’s high of 1.2654 by crossing the channel’s upper line.
Bullish trend/n
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