• USD/CAD reclaims 1.3500, distancing from the daily EMAs, as the uptrend accelerates.
• The major is testing a downslope trendline, which, if broken, the USD/CAD can rally to 1.3700.

The USD/CAD advanced in the North American session, though it retraced from 7-week highs at 1.3549, it retreated late in the session. Nevertheless, the USD/CAD is trading at 1.3537 and is gaining 0.65%.

After bottoming around 1.3262, the USD/CAD pair is gaining traction, and it’s approaching a four-month-old downslope resistance area at around 1.3560-75. Albeit, the major cleared significant hurdles on its way north, namely the 20, 50, 100, and 200-day Exponential Moving Averages (EMAs), consolidated within a 200-pip range. Nonetheless, the USD/CAD reclaiming the 1.3500 figure exacerbated the rally to multi-week highs.

For an uptrend resumption, the USD/CAD needs to break a downslope resistance trendline at around 1.3560-75. Once broken, the USD/CAD might test the 1.3600 psychological level. A breach of the latter, the USD/CAD will rally toward the January 3 daily high at 1.3685, followed by 1.3700.

As an alternate scenario, the USD/CAD first support would be 1.3500. Once cleared, the path toward the 50-day EMA at 1.3436 would be clear. The following demand area to be tested by the USD/CAD would be the confluence of the 20 and 100-day EMAs, at 1.3418 and  1.3413, respectively.

USD/CAD Daily chart

USD/CAD Key technical levels