USDCAD is heading north above the short-term simple moving averages (SMAs) after a bounce off the 200-day SMA, which holds near the 1.2730 support level. According to the technical indicators, the MACD is gaining ground above its trigger and zero lines, while the RSI successfully surpassed above the neutral threshold of 50.
Should the price close comfortably above the 1.2985 resistance, which has been unbreakable over the past month, traders could add more value to the pair, pushing the market up to 1.3175. More advances could lead the way for a retest of the 20-month peak of 1.3225.
In the negative scenario where the 40- and the 20-day SMA halts upside movements, the market could retest to the bottom of 1.2730. If this proves easy to overcome this time, the decline may next pause somewhere near the uptrend line at 1.2650, while even lower, investors could shift attention to the 1.2517 level.
In brief, USDCAD is in a bullish mode in the very short-term and any moves beyond 1.2985 could confirm the current positive bias.
