USD/CAD Price Analysis: Renews monthly high with eyes on 1.3520
- USD/CAD rises to the highest level in a month, braces for the biggest weekly gains since early December.
- Successful break of short-term key resistance lines, 200-SMA directs bulls towards 61.8% Fibonacci ratio.
- Sellers should remain cautious beyond four-day-old support line.
USD/CAD takes the bids to a fresh monthly high near 1.3490 during early Friday. In doing so, the Loonie pair rises for the fourth consecutive day while preparing for the biggest weekly run-up since early December 2022.
That said, the USD/CAD bulls cheer the upside break of a 12-day-old ascending trend line and one-month-old resistance line, now support, to keep buyers hopeful. Also favoring the USD/CAD bulls is the quote’s successful trading above the 200-SMA.
Given the aforementioned technical breakouts and bullish MACD signals, the USD/CAD pair is well-set to poke the mid-January swing high surrounding 1.3520. The same encompasses the 61.8% Fibonacci retracement level of the pair’s January-February downturn.
In a case where the USD/CAD remains firmer past 1.3520, the 1.3600 round figure may act as an intermediate halt before highlighting the previous monthly high of 1.3685 for the pair buyers.
On the flip side, the 12-day-old previous resistance line and a downward-sloping trend line from January 19 put a floor under the USD/CAD prices of around 1.3480 and 1.3455 in that order.
Following that, the 200-SMA and an ascending support line from Tuesday, respectively near 1.3400 and 1.3390, could act as the last defense of the USD/CAD buyers.
USD/CAD: Four-hour chart
Trend: Further upside expected