- The USD / CAD extends the retreat from the EMA by 50 days to a high of five days.
- The monthly resistance line adds to the support.
- The April high follows the break of the trend line during a new rise.
The USD / CAD is trading near the five-day high of 1.4100 in the middle of Thursday’s Asian session. The sustained recovery of the pair is moving from the key EMA, the short-term support line keeps buyers’ hopes up.
As a result, a bearish trend line from March 31, around 1.4175, appears to be on bullish radar before aiming to challenge the previous month’s peak of 1.4265.
During the pair’s further rise above 1.4265, the end of March high of 1.4350 and 1.4540 may attract optimists before pushing them towards the annual high close to 1.4670.
Meanwhile, 1.4000 round figure could entertain sellers during further declines. In addition, a confluence of EMA at 50 days and 50% Fibonacci the retracement of the increase from February to March, near 1.3950 / 40, could then challenge the bears.
In a case where USD / CAD prices fall below 1.3940, an upward trend line from April 30 could validate a further decline to 1.3850 including the lowest in April.
USD / CAD daily chart