USD/CAD Price Analysis: Bounces off 1.3530 support confluence amid bullish MACD signals

• USD/CAD grinds higher after bouncing off weekly low.
• Bullish MACD signals, sustained trading beyond convergence of 21-day EMA, one-month-old support line favor buyers.
• Seven-week-old descending trend line restricts recovery moves ahead of monthly high.

USD/CAD remains sidelined around mid-1.3500s, picking up bids to 1.3565 by the press time of early Wednesday morning in Europe.

In doing so, the Loonie pair defends the early Asian session recovery from the 1.3530 support confluence including the 21-day EMA and a one-month-old ascending trend line. Additionally favoring the upside momentum are the bullish MACD signals.

That said, a downward-sloping resistance line from October 21, close to 1.3650 at the latest, restricts the quote’s short-term upside.

Following that, the monthly high of 1.3700 will be crucial resistance as it holds the gate for the USD/CAD pair’s run-up toward the previous monthly high surrounding 1.3810.

It’s worth noting, however, that multiple hurdles near 1.3850 and 1.3900 could test the bulls past 1.3810.

Meanwhile, a daily closing below the 1.3530 support confluence won’t hesitate to challenge the monthly low of 1.3385.

Should the USD/CAD bears keep the reins past 1.3385, the 50% Fibonacci retracement level of August-October upside, near 1.3350, will precede November’s bottom surrounding 1.3230 to challenge the Loonie pair’s further downside. Also acting as a downside filter is the 61.8% Fibonacci retracement level of 1.3200.

USD/CAD: Daily chart

Trend: Further upside expected