USDCAD continues to move higher after it formed a seven-week bottom at 1.2960 and successfully surpassed the 23.6% Fibonacci retracement level of the upleg from 1.2060 to 1.3385, around 1.3072. Moreover, the pair climbed above the 20- and 40-simple moving averages (SMAs) in the daily timeframe, confirming the bullish picture.
However, the RSI indicator and the MACD oscillator have both weakened in the positive area, with the former slightly sloping down above the 50 level. The latter is heading above its red trigger line but moves near its zero line.
Should the price continue to move higher, immediate resistance could be found around the 1.3290 hurdle, taken from the peak on July 19. An aggressive bullish rally above this zone could open the way towards the one-year high of 1.3385, achieved on June 27.
In case of bearish extensions, investors could look for support at the 23.6% Fibonacci (1.3072). Failure to hold above this level could open the door for the 1.2960 support level before attention turns to the 38.2% Fibonacci region near 1.2880.
Taking a look at the bigger picture, dollar/loonie has been trading within an ascending price structure since September 2017 and in the weekly timeframe, the price trades near its opening levels.
