USD/CAD Price Analysis: Bulls look firmer above the trendline, 1.2960 eyed

• The greenback bulls are set to print fresh yearly highs above 1.2900.
• The RSI (14) has shifted into a bullish range for the very first time this year.
• A bull cross of 20- and 50-EMAs adds to the upside filters.

The USD/CAD pair is facing barricades around 1.2870 in the Asian session however, the broader picture looks extremely bullish. The asset has displayed a sheer upside move after hitting a low of 1.2719 on Friday.

On the daily scale, the greenback bulls have driven the major above the slightly declining trendline placed from 20 December 2021 high at 1.2964, adjoining the March’s high at 1.2901, followed by April’s high at 1.2880. The asset has strongly moved higher after sensing an intense responsive buying activity to near 10-period Exponential Moving Average (EMA) at 1.2760.

A bull cross of 20- and 50- EMAs at 1.2640 is indicating more upside in the counter ahead. Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00, which signals a firmer bullish momentum going forward. The momentum oscillator has established above 60.00 for the very first time this year.

For an upside momentum, the asset needs to overstep April’s high t 1.2880, which will send the asset towards March’s high at 1.2901. Breach of the latter will drive the asst towards the 20 December 2021 high at 1.2964.

On the contrary, Lonnie bulls could regain control if the asset tumbles below Thursday’s low at 1.2791. This will drag the asset towards the 10-EMA at 1.2760, followed by the round level support at 1.2700.

USD/CAD daily chart