Looking at the bigger picture, USD/CAD continues to trade within the long-term rising channel, taken from the 8th of September last year. On a smaller scale, the pair is above the upwards moving trendline, drawn from the 17th of April. Thus, all this creates an idea that USD/CAD could try and continue pushing higher over a longer period of time. That said, the 1.3050 barrier continues breaking dreams of possible rallies and keeps forcing the pair to close below it.
Until the aforementioned trendline is broken, we shall stay with the upside scenario. During the early European morning, the pair emerged above the round figure of 1.3000, something that may have opened the way for another test near the 1.3050 area. If this area is not able to withhold the rate from accelerating, then the pair could travel all the way up to the 1.3125 zone, marked by the peak of the 19th of March.
Currently, our oscillators also support the upside idea. The RSI is above 50 and is pointing higher. The MACD is above both its 0 and trigger lines, and also seems to be aiming for a move higher.
Alternatively, a move back down towards the 1.2935 area and eventually a break below it, could open the path to the next key level of support at 1.2895. Slightly below that lies the previously mentioned upwards moving trendline, which could act as the next key area of support. Certainly, if USD/CAD starts breaking it, then this could spook the bulls, who could start abandoning the pair. This could be the time for the bears to shine, who could drive USD/CAD to the 1.2855 mark or even the 1.2825 level.
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