On Monday, the USD/CAD recoups some of the previous day’s losses.
More increases are expected if the price goes through 1.2350.
When the momentum oscillator trades with a positive bias, it indicates that the market will continue to rise.
In the first European trading session on Monday, the USD/CAD pair is slightly higher. The pair started off lower but quickly recovered to to an intraday high of 1.2348.
The USD/CAD currency pair is currently trading at 1.2346, up 0.18 percent on the day.
On the daily chart, USD/CAD surged to 1.2449 on Friday after consolidating in the 1.2280-1.2330 trading region. However, it was unable to maintain the upward trend.
Price would go toward the 100-day Simple Moving Average (SMA) at 1.2384 if it broke the session’s high at 1.2348.
The indicator Relative Strength Index (RSI) is comfortably above 50. The bulls in the USD/CAD pair would then seek to hit Friday’s high near 1.2450.
A daily close above 1.2450 would encourage bulls to go higher into the critical psychological level of 1.2500.
If price continues to fall, the initial level of support might be found at the 1.2300 horizontal support level, followed by the June 23 low of 1.2252.
The next point of support was at the 1.2220 horizontal support level./n
