Bulls attack weekly resistance near 1.3550

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  • November 10, 2022
  • USDCAD grinds higher after bouncing off six-week low the previous day.
  • 100-HMA breakout, bullish MACD signals keep buyers hopeful.
  • 200-HMA act as extra filter to the north, sellers may wait for 1.3460 break for fresh entry.

USDCAD struggles to defend buyers around 1.3540 heading into Thursday’s European session. In doing so, the Loonie pair approaches the one-week-old horizontal resistance area following its rebound from the 100-HMA.

Given the bullish MACD signals supporting the 100-HMA breakout, the USDCAD prices are likely to cross the immediate hurdle near 1.3550. However, the 200-HMA surrounding 1.3580 challenges the pair buyers.

It should be noted that the USDCAD pair’s successful trading above 1.3580 enables the buyers to aim for a monthly high of near 1.3810.

Meanwhile, the 100-HMA restricts the quote’s immediate downside to around 1.3510.

Following that, an upward-sloping trend line from Tuesday, around 1.3455, precedes the latest trough near 1.3385 to challenge the USDCAD bears.

Should the pair remains weak past 1.3385, highs marked during July 2022, around 1.3225, can’t be ruled out.

Overall, USDCAD remains on the bull’s radar but further upside appears limited unless the quote breaks the 200-HMA hurdle.

USDCAD: Hourly chart

Trend: Further weakness expected