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Technical Analysis: USDCAD battles key resistance ahead of Biden’s speech, FOMC minutes

USDCAD extends recovery moves from 1.2500 as bulls attack a 10-week-old descending trend line ahead of the key speech from US President Joe Biden and FOMC minutes. Given the likely positive results from both the events, coupled with the nearly overbought RSI, USDCAD may step back from a crucial hurdle to the north, around 1.2615. The pullback moves may eye the 38.2% Fibonacci retracement level of 1.2560 as immediate support. However, a downward sloping trend line from March 26, near 1.2500, should restrict any further declines.

In a case of surprise disappointment, the loonie pair could easily cross the 1.2615 resistance and eye for the 61.8% Fibonacci retracement level of 1.2685. While RSI conditions may keep challenging the quote’s upside past-1.2685, any further rise will aim for a horizontal line from February 17 near 1.2750. Overall, USDCAD is in a downtrend but the key resistance line teases short-term buyers.

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