USD/CAD Price Analysis: Rallies above the 1.3200 figure, threatening to clear the YTD high

• USD/CAD approaches the YTD high at around 1.3223, amidst a risk-off mood.
• If USD/CAD buyers hold the fort above 1.3200, it could open the door for further gains, as they eye 1.3300.

The USD/CAD conquers the 1.3200 figure for the third time during the year, reaching a fresh weekly high, but shy of the YTD high reached on July 14 at 1.3227. The USD/CAD is trading at 1.3222, above its opening price by 0.39% at the time of writing.

USD/CAD Price Analysis: Technical outlook

The USD/CAD continued extending its gains throughout the week. After Tuesday’s gains of 1.36%, the major stabilized around the day’s highs, shy of the YTD peak, eyeing a break above that could pave the way towards 1.3300. Worth noting that the Relative Strength Index (RSI) remains in bullish territory, with some room before reaching overbought conditions, suggesting that a 1.3300 test is on the cards.

Near term, the USD/CAD four-hour chart shows the major testing of the 1.3200 figure for the third time in the month, poised to print a fresh YTD high above 1.3220. If buyers clear the 1.3227 YTD high, a move towards 1.3300 is likely to happen, but firstly it would need to overcome some hurdles on its way up.

The USD/CAD first resistance would be the YTD high at 1.3227. The break above will expose the R2 pivot point at 1-3237, followed by the R3 daily pivot at 1.3268, ahead of the 1.3300 figure.

On the flip side, the USD/CAD failure to hold above 1.3200 could pave the way for further downside. Therefore, the USD/CAD first support would be the daily pivot at 1.3172. Once it’s cleared, it would expose support levels, like the S1 daily pivot at 1.3134, followed by the 20-EMA at 1.3117, ahead of the S2 pivot at 1.3104.

USD/CAD Key Technical Levels