USD/CAD Price Analysis: 61.8% FE, overbought RSI tests further upside past 1.3200

• USD/CAD remains sidelined at the highest levels since November 2020.
• RSI (14) conditions, 61.8% FE probe bulls, sellers need validation from two-month-old previous resistance.
• 78.6% FE, late 2020 peak could lure buyers beyond 1.3250.

USD/CAD bulls take a breather at the 22-month high, sidelined around 1.3240 during early Friday morning in Europe, as overbought RSI (14) and a short-term key hurdle challenge further upside of the Loonie pair.

That said, the 61.8% Fibonacci Expansion (FE) of the pair’s moves between August 11 and September 13, close to 1.3250, restricts the quote’s immediate upside.

Even so, successful trading beyond the previous resistance line from mid-July, now support around 1.3200, keeps the USD/CAD buyers hopeful.

That said, the 78.6% FE level near 1.3330 could lure the pair bulls should the prices rally beyond the 1.3250 immediate hurdle. Following that, October 2020 high near 1.3390 will be in focus.

Alternatively, a downside break of the 1.3200 resistance-turned-support could quickly fetch the USD/CAD pair towards the mid-week low of around 1.3150.

Though, the late August swing high and the 200-SMA, respectively near 1.3060 and 1.2990, could challenge the Loonie pair’s further downside.

USD/CAD: Four-hour chart

Trend: Pullback expected