USD/CAD Price Analysis: Retreats towards 100-SMA, fortnight-old support line

• USD/CAD remains depressed after reversing from weekly top.
• Bullish MACD signals, upbeat RSI keeps buyers hopeful.
• Symmetrical triangle restricts immediate moves between 1.3450 and 1.3340.

USD/CAD holds lower ground near 1.3390 during early Thursday morning in Asia, after positing the biggest daily gains in a fortnight to refresh the weekly top the previous day.

In doing so, the Loonie pair declines towards the 100-bar Simple Moving Average (SMA) inside a monthly symmetrical triangle formation, currently between 1.3450 and 1.3340.

It’s worth noting, however, that the bullish MACD signals and the firmer RSI keeps the USD/CAD buyers hopeful.

That said, a clear upside break of the stated triangle’s top line, close to 1.3450 at the latest, becomes necessary to convince the bulls.

Following that, a run-up towards the monthly high of 1.3475 and then to a late January peak of 1.3520 can’t be ruled out.

In a case where the USD/CAD price remains firmer past 1.3520, the odds of witnessing a rally toward the year-start top near 1.3685 can’t be ruled out.

On the flip side, a clear break of the 100-SMA, around 1.3370 at the latest, becomes necessary for the USD/CAD bears to keep the reins. Even so, the stated triangle’s bottom surrounding 1.3340 could challenge the Loonie pair’s further declines.

Should the quote remains bearish past 1.3340, it becomes vulnerable to refresh the monthly low, near 1.3260 at the latest.

USD/CAD: Four-hour chart

Trend: Further upside expected