• USD/CAD refreshes multi-day top after crossing five-week-old resistance line.
• Bullish MACD signals further upside beyond 50-DMA, sellers need validation from 200-DMA.

USD/CAD pierces 1.2700, up 0.30% around 1.2715 to refresh a three-week top during early Thursday in Europe.

In doing so, the Loonie pair justifies the previous day’s upside break of a descending trend line from December 20, as well as the bullish MACD signals.

However, the 50-DMA level of 1.2715 restricts the quote’s immediate advances.

In addition to the 1.2715 resistance, 1.2780 and the 1.2800 levels may also challenge USD/CAD bulls before directing them to the two-month-old horizontal resistance near 1.2850.

Alternatively, pullback moves remain elusive beyond the previous resistance line, near 1.2640 by the press time.

Following that, 50% and 61.8% Fibonacci retracement level of October-December upside, respectively near 1.2630 and 1.2545, will challenge the USD/CAD bears.

Even if the USD/CAD prices drop below 1.2545 support, the 200-DMA around 1.2500 will act as the last hope for bulls.

USD/CAD: Daily chart

Trend: Further upside expected