- The USD / CAD bulls are preparing for a test of the 1.3000 level, where the 100-day SMA lies.
- The daily chart shows the break of a descending wedge on Wednesday.
- The USD / CAD recovers the 50-day SMA, with the RSI climbing into positive territory.
USD / CAD is accelerating Wednesday’s rally and remains poised to test the round 1.3000 level in the coming days, amid a bullish technical setup.
After confirming the breaking of a descending wedge on the daily chart on Wednesday, the upward momentum of USD / CAD has gained strength on Thursday, with buyers now challenging the December 27 highs at 1.2878 before aiming to regain the level. of 1.2900.
A test of the December 21 high at 1.2958 also seems like a clear target if the bulls extend control.
With the 14-day RSI heading higher, USD / CAD remains poised for a further rally towards the downtrend 100-day SMA at 1.3000.
The current rally has passed the 50-day bearish moving average, now at 1.2804, which has formed solid support in the event of any profit-taking pullback.
The next support awaits around 1.2730, where the former resistance of the pattern, now turned into support, coincides with the 21-day SMA.
USD / CAD daily chart
USD / CAD technical levels
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