USD/CAD Price Analysis: Testing waters ahead of a bullish impulsive wave, 1.3300 eyed

• Profit-booking has dragged the asset to near 1.3100 after a fresh yearly high at 1.3223.
• Advancing 20-and 50-period EMAs add to the upside filters.
• The RSI (14) is oscillating in a bullish range of 60.00-80.00 which indicates more upside ahead.

The USD/CAD pair is auctioning in a range of 1.3093-1.3141 from Thursday after meeting with long liquidations by the market participants. The asset witnessed correction after printing a fresh yearly high of 1.3223.

The approach of profit-booking after the asset turned extremely overbought has dragged the greenback bulls to near the horizontal support which is placed from July 5 high at 1.3084. The asset is hovering around the discussed support and is expected to turn bullish again after testing the waters.

The 20- and 50-period Exponential Moving Averages (EMAs) at 1.3042 and 1.3006 respectively are scaling higher, which adds to the upside filters.

Also, the Relative Strength Index (RSI) (14) is oscillating in the bullish range of 60.00-80.00, which indicates more upside ahead.

A breach of the yearly high at 1.3223 will drive the asset towards the 4 November 2020 high at 1.3300, followed by a 2 November 2020 high at 1.3370.

Alternatively, a slippage below July 8 low at 1.2936 will drag the asset towards June 28 low at 1.2819. A slippage below the latter will expose the asset to more downside towards May 5 low at 1.2713.

USD/CAD four-hour chart