#USDCAD @ 1.32830 remains firmer around the highest level since November 2020., @nehcap view: Limited upside expected (Pivot Orderbook analysis)

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• USD/CAD remains firmer around the highest level since November 2020.
• Overbought RSI, 61.8% FE and upper line of the bullish channel challenge the buyers.
• July’s top restricts immediate downside, October 2020 high acts as an additional upside filter.

The pair currently trades last at 1.32830.

The previous day high was 1.3308 while the previous day low was 1.3227. The daily 38.2% Fib levels comes at 1.3277, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3258, expected to provide support.

USD/CAD remains on the front foot around 1.3285 during Monday’s early European morning, up for the third consecutive day near the 22-month high flashed the previous day.

A successful break of July’s top, surrounding 1.3220 keeps the USD/CAD buyers hopeful. However, nearly overbought RSI (14) joined the upper line of an 11-month-old ascending trend channel and the 61.8% Fibonacci Expansion (FE) of October 2021 to August 2022 moves to challenge the pair buyers.

With this, the 1.3300-10 resistance confluence restricts the Loonie pair’s immediate upside, a break of which could direct the quote towards the upper line of an immediate bullish channel, close to 1.3370.

It’s worth noting that October 2020 peak near 1.3390 and the 1.3400 threshold also act as short-term hurdles to watch for the USD/CAD bulls.

Alternatively, a downside break of July’s peak of 1.3223 could direct the pair towards the top marked in May, surrounding 1.3080.

However, the 1.3000 psychological magnet and the aforementioned short-term channel’s support line, close to 1.2990, could restrict additional declines in the USD/CAD pair.

Overall, USD/CAD bulls have limited room to cheer but the bears also have a tough road to regaining the market’s confidence. As a result, the quote is likely to grind higher.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3288 at the time of writing. Pair opened at 1.3264 and is trading with a change of 0.18% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.3091, 50 SMA 1.2973, 100 SMA @ 1.291 and 200 SMA @ 1.2796.

The previous day high was 1.3308 while the previous day low was 1.3227. The daily 38.2% Fib levels comes at 1.3277, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3258, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3225, 1.3186, 1.3144
• Pivot resistance is noted at 1.3305, 1.3347, 1.3386

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