FX.co ★ Tote | USD/CAD

USDCAD Hourly Chart Analysis: On Friday, the USD/CAD pair gains substantial follow-through momentum following a solid rebound from around the monthly bottom earlier this week. The pace, aided by many factors, propels spot prices to the 1.42562-1.42612 area, the highest level since January 6. Crude oil prices have dropped to their lowest level in one and a half weeks due to worries that rising borrowing rates will impede economic growth and restrict gasoline usage. As a result, the commodity-linked Loonie is weakened, benefiting the USD/CAD pair when paired with further US dollar purchases. From a technical viewpoint, the extended overnight gain above the 1.41272 level, which marks the upper end of a descending channel that has been in place for more than two months, was seen as a new bullish trigger. A further climb over the 50-day SMA raises the chances of additional higher movement. However, spot prices are struggling to rise above the hourly charts' overbought RSI of 14, which stands at 14. As a result, it would be prudent to postpone initiating fresh bullish positions around the USD/CAD pair until there is a convincing breach of the previously indicated barrier, which is presently placed around the 1.42497 level. Bulls should be able to break past a hurdle near 1.42987 as a result of the subsequent upward momentum and seek to reclaim the 1.43262 round-figure level. The upward trend may continue to challenge the year-to-date high, which was established in January in the range of 1.44062-1.44142. On the other side, any subsequent slide below the horizontal resistance breakpoint between 1.42047 and 1.41977 might be interpreted as a buying opportunity. The latter should provide a firm foundation for the USD/CAD pair, and if it is broken, the picture may become less positive.