USD/CAD is holding gains above 1.3560 and might start another increase.
Important Takeaways for USD/CAD Analysis Today
· USD/CAD is correcting gains from the 1.3640 resistance zone.
· There is a key bullish trend line forming with support near 1.3585 on the hourly chart at FXOpen.
USD/CAD Technical Analysis
On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3510 level. The US Dollar started a fresh increase above the 1.3560 resistance against the Canadian Dollar.
The pair cleared the 50-hour simple moving average to set the tone for a sustained upward move. Finally, the bears appeared near the 1.3640 zone.
A high was formed near 1.3639 and the pair recently corrected lower. It declined below the 23.6% Fib retracement level of the upward move from the 1.3507 swing low to the 1.3639 high. It is now trading above the 50-hour simple moving average.
There is also a key bullish trend line forming with support near 1.3585. If the pair stays above the trend line, it could start another increase.
Initial resistance sits at 1.3610. A clear upside break above 1.3610 could start another steady increase. The next major resistance is the 1.3640 level. A close above the 1.3640 level might send the pair toward the 1.3720 level. Any more gains could open the doors for a test of the 1.3800 level.
Conversely, the pair could continue to move down. Initial support is near the 1.3585 level and connecting bullish trend line on the same USD/CAD chart. The next major support is near the 61.8% Fib retracement level of the upward move from the 1.3507 swing low to the 1.3639 high at 1.3560.
A downside break below the 1.3560 level could push the pair further lower. The next major support is near the 1.3510 support zone, below which the pair might visit 1.3450.
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