USD/CAD Price Analysis: Bulls pierce multi-month resistance, setting their sights on 1.3500

• USD/CAD climbs, bolstered by elevated US Treasury bond yields, aiming for a daily close above 1.3450.
• The USD/CAD bearish bias will resume below 1.3400, as sellers would eye the 200-DMA.

USD/CAD climbs in the mid-North American session and tests a six-month-old resistance trendline that passes at around 1.3440. Though the USD/CAD bias remains neutral-to-downward biased, it could shift neutral if the pair reclaims the 100-day Exponential Moving Average (EMA). At the time of writing, the USD/CAD is trading at 1.3444 after reaching a low of 1.3384.

USD/CAD Price Action

Given the backdrop, the USD/CAD could continue to rally and test the 20-day EMA at 1.3483 in the near term, which will immediately expose the 100-day EMA at 1.3500. Once that psychological resistance level is cleared, the bias shifts to neutral. A breach of the latter and the USD/CAD can test the 50-day EMA at 1.3525 before aiming for the 1.3600 figure.

Conversely, a USD/CAD bearish resumption will happen if the latest leg-up struggles to crack 1.3450. If that scenario plays out, coupled with the Relative Strength Index (RSI) staying in bearish territory, the USD/CAD could re-test 1.3400, followed by the 200-day EMA at 1.3378. A break below will turn the USD/CAD pair bearish and open the door to test the YTD low at 1.3262.

USD/CAD Daily Chart