Technical Analysis: USDCAD bulls need validation from 1.2810 on Canada Election Day
Alike other major currency pairs, USDCAD respects the broad US dollar strength while rising to the fresh high of the month. Also adding to the upside pressure is the Federal Elections in Canada, even the results are less likely to offer any entertainment. That said, the quote heads towards a two-month-old resistance around 1.2810 with the bullish MACD contrasting with nearly overbought RSI to challenge the bulls afterward. Also acting as an upside hurdle is the late August highs near 1.2830-35, a break of which could direct bulls to the yearly peak surrounding 1.2950.
Meanwhile, pullback moves may aim for 23.6% and 38.2% Fibonacci retracement levels, respectively near 1.2730 and 1.2600. However, any further downside will be challenged by the 100-day EMA level of 1.2533. While USDCAD buyers are likely to return from 1.2530, any failures to do so won’t hesitate in challenging the monthly low close to 1.2495. Overall, USDCAD remains bullish but a profit-booking move can’t be ruled out.