USD/CAD Price Analysis: Rejects fortnight-old bearish channel as bulls approach 1.2900

• USD/CAD takes the bids to refresh intraday high during three-day uptrend.
• Bullish MACD signals, successful break of two-week-old bearish channel’s resistance favors buyers.
• 200-SMA acts as an additional upside filter while sellers have a bumpy road to return.

USD/CAD extends the previous upside momentum while ejecting the short-term bearish chart pattern during Wednesday’s Asian session. In doing so, the Loonie pair refreshes intraday high around 1.2890 during the three-day uptrend.

In addition to the clear upside break of the two-week-old descending trend channel, the bullish MACD signals also keep USD/CAD buyers hopeful.

However, the 200-SMA hurdle surrounding 1.2930 probe the upside momentum before highlighting the 1.3000 threshold for the bulls.

In a case where the USD/CAD prices remain firm past 1.3000, the previous monthly peak near 1.3225 will be in focus.

Alternatively, sellers need to wait for a sustained pullback below the resistance-turned-support line, near 1.2875 at the latest.

USD/CAD: Four-hour chart

Trend: Further upside expected