USDCAD remains pressured for the third consecutive day after reversing from a 6.5-month high marked last week. In doing so, the Loonie pair struggles to justify the recent run-up of the US Dollar, mainly due to the risk-off mood, as Canada’s main export item, namely WTI crude oil, jumps 4.0% on geopolitical fears surrounding the Israel war. Apart from the strength of the Greenback and the WTI, a one-year-old previous resistance line surrounding 1.3650 also challenges the pair sellers. Should the quote break the 1.3650 support, sellers could rush toward the mid-January swing high near 1.3520. However, a convergence of the 200-day SMA and a three-month-old rising support line, close to 1.3460, will be a tough nut to crack for the pair bears.
Meanwhile, the 1.3700 threshold guards the immediate upside of the USDCAD pair ahead of the latest swing surrounding 1.3785. Following that, the yearly high marked in March around 1.3865 and the 1.3900 round figure could lure the Loonie pair buyers. It’s worth noting that the previous yearly peak of near 1.3980 and the 1.4000 psychological magnet will challenge the pair’s upside past 1.3900 before giving a free hand to the bulls.
Overall, USDCAD remains on the bull’s radar despite the latest retreat from the multi-month high.