USD/CAD Price Analysis: Inverted hammer, fortnight-long support line defends bulls above 1.3650

• USD/CAD holds onto the previous day’s rebound, picks up bids of late.
• Bullish candlestick formation, recovery from short-term support line favor buyers.
• Weekly resistance line, overbought RSI challenge upside momentum.
• 10-DMA adds to the downside filters before reversing the uptrend.

USD/CAD defends the third consecutive weekly gain at around 1.3685 during Friday’s Asian session. In doing so, the Loonie pair justifies the previous day’s bullish candlestick formation, as well as a rebound from the 13-day-old support line, amid the price-positive MACD signals.

With this, the quote is well-set to challenge the immediate hurdle, namely the weekly resistance line surrounding 1.3740, before aiming for the recently flashed multi-month high near 1.3835.

It’s worth noting that the 1.3800 could act as an extra resistance that could join the overbought RSI (14) to challenge the USD/CAD buyers.

If at all the pair remains firmer past 1.3835, the odds of witnessing a rally towards the 1.4000 psychological magnet can’t be ruled out.

Meanwhile, pullback moves need to provide a daily closing below the stated support line, near 1.3660 by the press time.

Even so, the 10-DMA level around 1.3560 could challenge the USD/CAD bears before giving them control.

Overall, USD/CAD remains on the bull’s radar but the upside momentum appears limited.

USD/CAD: Daily chart

Trend: Further upside expected