USD/CAD Price Analysis: Bulls running out of steam above 1.3000
- USD/CAD remains sidelined after refreshing 18-month high, probes four-day uptrend.
- Overbought RSI, monthly resistance line challenge immediate upside.
- Weekly support holds the key to short-term pullback but bears remain cautious above 200-SMA.
USD/CAD bulls take a breather around the 18-month high, steady around 1.3030 during Wednesday’s Asian session.
The loonie pair’s latest inaction probes the four-day uptrend that propelled it to the highest levels since November 2020.
However, the overbought RSI (14) stops USD/CAD bulls from crossing a one-month-old rising trend line resistance, at 1.3045 by the press time.
Should the quote ignores technicals and rally beyond 1.3045, the odd of its challenge to the mid-November 2020 peak surrounding 1.3175 can’t be ruled out.
Meanwhile, a one-week-long rising trend line, close to 1.3015 at the latest, precedes the 1.3000 psychological magnet to restrict the immediate downside of USD/CAD prices.
Also acting as short-term key support is the 50-SMA and an upward sloping trend line from April 21, respectively around 1.2875 and 1.2815.
It’s worth noting that the 200-SMA level surrounding 1.2660 acts as the last defense of the USD/CAD bulls in case of the pair’s declines past 1.2815.
USD/CAD: Four-hour chart
Trend: Pullback expected