USD/CAD Price Analysis: Corrects on testing three-week high at 1.3080

• The greenback bulls have faced correction after testing a three-week high at 1.3080.
• Advancing 20- and 50-period EMAs add to the upside filters.
• The RSI (14) is oscillating in a bullish range of 60.00-80.00 which indicates more upside ahead.

The USD/CAD pair is going through a correction phase after displaying a perpendicular upside move from Tuesday’s low at 1.2844. The asset extended its recovery on Tuesday after overstepping the critical hurdle of 1.2965.

On an hourly scale, the asset has faced barricades while surpassing its three-week high at 1.3080. A violation of an old resistance fetches a reversal in the counter. However, the upside remains favored as the upside move towards 1.3080 was extremely firmer. Going forward, the corrective move may turn into a bullish impulsive wave.

The 20- and 50-period Exponential Moving Averages (EMAs) at 1.2990 and 1.2938 respectively are scaling higher, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which indicates more upside ahead. A minor correction has been witnessed in the greenback bulls after the momentum oscillator turned overbought. The overall trend is still bulls and the RSI (14) may find support around 60.00.

Should the asset surpass the three-week high at 1.3080 decisively, the greenback bulls will drive the asset towards the round-level resistance and 4 November 2020 at 1.3200 and 1.3300 respectively.

Alternatively, the loonie bulls could regain control if the asset drops below the critical support of the June 28 low at 1.2819. This will drag the asset towards June 9 high at 1.2705, followed by June 6 high at 1.2619.

USD/CAD hourly chart