USD/CAD Price Analysis: Extends rebound from 200-SMA towards 1.3570 resistance confluence

• USD/CAD picks up bids while snapping two-day down trend, recovers from three-week low.
• RSI rebound, easing bearish bias of MACD joins the failure to break the key SMA to lure buyers.
• Convergence of one-week-old descending trend line, previous support line from mid-November challenges immediate upside.

USD/CAD stays mildly bid near 1.3530 as it prints the first daily gains in three during early Wednesday. In doing so, the Loonie pair defends the latest bounce off a three-week low.

That said, the quote recovered from the 200-SMA the previous day as the RSI (14) took a U-turn from the oversold territory. Also supporting the recovery moves was the receding strength of the bearish MACD signals.

As a result, the USD/CAD rebound is likely to approach the 1.3570 resistance confluence including the one-week-old descending resistance line, as well as the previous support line from November 15.

Should the Loonie pair successfully breaks the 1.3570 hurdle, November’s peak of 1.3645 and the previous weekly top near 1.3685 could lure the buyers.

Following that, the monthly high near 1.3705 could check the upside momentum before allowing buyers to aim for the yearly peak of 1.3977.

Meanwhile, the 1.3500 round figure precedes the 200-SMA, near 1.3495 at the latest, to restrict short-term USD/CAD downside.

In a case where the quote remains bearish past 1.3495, the monthly low of 1.3385 will act as the last defense of the pair buyers.

USD/CAD: Four-hour chart

Trend: Further upside expected