USD/CAD to surge above the 1.30 level on a move beyond 1.2850

USD/CAD has reclaimed the 1.2800 level as defends two-month-old ascending trend-channel support. FXStreet’s Haresh Menghani expects the pair to advance towards mid-1.30s on a break above the 1.2835/50 resistance zone.

Convincing break below 1.2770/65 to open up 1.2640/35

“USD/CAD, so far, has managed to defend the lower boundary of an upward sloping channel extending from late October around the 1.2770/65 region, which should act as a key pivotal point for short-term traders. A convincing break below will set the stage for an extension of the recent retracement. The pair might then turn vulnerable to accelerate the fall towards the 1.2700 round-figure mark and extend the corrective slide further towards the next relevant support near the 1.2640/35 region.”

“The 1.2835/50 region now seems to have emerged as an immediate strong barrier. A sustained strength beyond will reaffirm the trend-channel support, which should allow the pair to aim back to reclaim the 1.2900 mark. The momentum could push USD/CAD further to the 1.2960/65 area, or the YTD top, en-route the key 1.3000 psychological mark and the ascending channel resistance, currently near mid-1.3000s.”