USD/CAD Price Analysis: 1.3400 appears a tough nut to crack for bulls

• USD/CAD prints mild gains to reverse the previous day’s losses, grinds higher around the key upside hurdle.
• 200-DMA, three-week-old descending trend line and 23.6% Fibonacci retracement together highlight 1.3400 as the key resistance.
• Upward sloping trend line from early February restricts immediate downside amid nearly oversold RSI (14).

USD/CAD bulls jostle with the key upside hurdle around 1.3400 as they reverse the previous day’s pullback moves during sluggish Wednesday morning in Europe. In doing so, the Loonie pair stays on the way to posting the weekly gains after falling heavily in the last week.

That said, a convergence of the 200-DMA, downward-sloping trend line from March 24 and 23.6% Fibonacci retracement level of the USD/CAD pair’s fall during October-November 2022 together highlight 1.3400 as the key upside hurdle.

Also challenging the bulls is the downbeat conditions of the RSI (14) even if the line’s nearness to the oversold territory prods bears.

Should the quote manages to successfully cross the 1.3400 hurdle, the odds of witnessing a fresh monthly high, currently around 1.3555, can’t be ruled out.

However, the 50% and 61.8% Fibonacci retracement levels, respectively near 1.3600 and 1.3695, will precede March’s peak of near 1.3865 to lure the USD/CAD buyers afterward.

Alternatively, pullback moves remain elusive unless the Loonie pair stays beyond an ascending suppot line from early February, close to 1.3330 by the press time.

Following that, a slump to the yearly low marked in February around 1.3260 can’t be ruled out.

USD/CAD: Daily chart

Trend: Further upside expected