USDCAD has hovered well above 1.3350 support level but is capped by the 20-day Simple Moving Average (SMA).
From a technical point of view, short-term bias is considered positive, reflected by improving RSI and Stochastic. Still, only a decisive close above resistance near 1.3418 can boost buying pressure towards the 1.3460 barrier. Stretching further, the bulls could then stop near the psychological 1.3500 bar.
In the event of a downward reversal below 1.3350, the 23.6% Fibonacci retracement level of the 1.2993 uptrend to 1.3418 to 1.3317 could ease the selling pressure. Failure to rebound on the latter could show the 1.3260-1.3270 support zone ahead of Fibo at 38.2% from 1.3255.
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Overall, the market continues to print higher ups and downs, keeping the positive outlook intact. A dip below 61.8% Fibonacci of 1.3155 would disrupt the uptrend, returning the outlook to neutrality.
In summary, USDCAD has the potential to gain further ground. A rise above the two month high should trigger the next bullish move.