USD/CAD Price Analysis: Looks set for further upside beyond 1.3700

• USD/CAD takes the bids to refresh intraday high, prints six-day uptrend.
• A clear break of three-week-old descending trend line, 21-DMA favors bulls.
• The one-month-old horizontal region appears a tough nut to crack for bears.

USD/CAD renews weekly top near 1.3720 as it extends the five-day-old winning streak to Thursday’s Asian session.

In doing so, the Loonie pair justifies the previous day’s upside break of the downward-sloping resistance line from October 13, now support, as well as the 21-DMA. Also keeping the bulls hopeful are the recently easing bearish MACD signals.

With this, the USD/CAD buyers are all set to challenge the late October swing high near 1.3855 before targeting the previous monthly top near 1.3980.

It’s worth noting, however, that the 1.4000 psychological magnet may challenge the Loonie pair’s further upside.

Alternatively, the 21-DMA restricts the USD/CAD pair’s pullback near the 1.3700 round figure, a break of which will highlight the resistance-turned-support line, around 1.3670 at the latest, for the bear’s conviction.

Even so, a one-month-long horizontal region comprising lows marked in October and the 50-DMA, around 1.3505-3485, holds the gate for the seller’s easy ruling.

To sum up, USD/CAD buyers are likely to extend the post-Fed rally towards refreshing the weekly top. However, the upside room appears limited, which in turn highlights the scope of a pullback after an initial run-up.

USD/CAD: Daily chart

Trend: Further upside expected