USD/CAD Price Analysis: Extends bounce off 50-DMA towards 1.3075-85 resistance area

• USD/CAD takes the bids to extend Friday’s run-up towards one-week high.
• 3.5-month-old horizontal resistance area appears a tough nut to crack for bulls.
• Rising wedge raise doubts about bull’s dominance despite firmer oscillators.

USD/CAD remains on the front foot around 1.3050, extending Friday’s heavy gains towards a one-week high, as buyers cheer the previous day’s bounce off the 50-DMA during Monday’s initial Asian session.

The Loonie pair marked the biggest daily gains in more than a week on Friday after taking a U-turn from the 50-DMA support. The recovery moves also took clues from the firmer RSI and bullish MACD signals.

However, a horizontal area comprising multiple tops marked since May 12, around 1.3075-85, could challenge the USD/CAD bulls.

If not, then the upper line of the aforementioned three-week-old rising wedge near 1.3105 and the mid-July peak of 1.3135 could appear as intermediate halts during the run-up towards the yearly high near 1.3225.

On the contrary, pullback moves remain elusive until staying beyond the wedge’s support line, at 1.2940 by the press time.

Even if the USD/CAD declines below the 1.2940 support, the bears need confirmation from the 50-DMA support of 1.2920 to retake control.

Following that, the monthly low near 1.2730 and an upward sloping trend line from May, around 1.2690 will be in focus.

USD/CAD: Daily chart

Trend: Limited upside expected