USD/CAD Price Analysis: Renews yearly high as bulls eye 1.2965

• USD/CAD takes the bids to refresh the highest levels since December 21, 2021.
• Upside break of horizontal area from September 2021, absence of overbought RSI signal further advances.
• The late 2021 peak lures buyers, two-week-old ascending trend line adds to the downside filters.

USD/CAD extends the previous week’s rebound from 1.2813 as it rises to the fresh high of 2022 during Monday’s Asian session. That said, the Loonie pair rises 0.20% around 1.2931 by the press time.

A successful break of the horizontal area comprising multiple tops marked since September 2021, around 1.2895, keeps the USD/CAD buyers hopeful. Also favoring the upside momentum is the absence of overbought RSI conditions.

Hence, the latest run-up has further room to the north before hitting a speed-breaker, namely December 2021 high near 1.2965.

Following that, an upward sloping trend line from August 2021, near 1.2985, will precede the 1.3000 psychological magnet to entertain the USD/CAD bulls.

Meanwhile, pullback moves may initially aim for the previous horizontal resistance, now support around 1.2895, ahead of challenging an upward sloping support line from April 21, close to 1.2760 at the latest.

Even if the USD/CAD prices drop below 1.2760, the bears can wait for a clear break below the 100-DMA level of 1.2682 for conviction.

USD/CAD: Daily chart

Trend: Further upside expected