The USDCAD currency pair remains close to its three-week high at the exchange rate of 1.33706. This is happening as important economic data from both the US and Canada is about to be released, and the pair is struggling to overcome the obstacle of the 50-day Exponential Moving Average (EMA). However, the expectation is that there will be limited potential for further price gains.

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• USD/CAD grinds near three-week high as key US, Canada data looms, clings to 50-EMA hurdle.

The pair currently trades last at 1.33706.

The previous day high was 1.3293 while the previous day low was 1.322. The daily 38.2% Fib levels comes at 1.3265, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3248, expected to provide support.

USD/CAD bulls take a breather around the highest levels in three weeks, after rising the most in 1.5 months the previous day, as it flirts with the 50-Exponential Moving Average (EMA) hurdle amid Friday’s Asian session. That said, the Loonie pair seesaws around 1.3365-70 as markets turn cautious ahead of the top-tier US and Canada employment figures.

Also read: USD/CAD soars to multi-week highs amid hawkish bets on the Fed

It should be noted that the Loonie pair’s upside break of an ascending resistance line stretched from November 2022, now immediate support near 1.3340, joins the bullish MACD signals and upbeat RSI (14) line, not overbought, to keep buyers hopeful of crossing the nearby hurdle of 1.3365.

However, the 200-EMA surrounding 1.3390 appears a major problem for the USD/CAD pair’s further upside.

In a case where the USD/CAD manages to cross the 1.3390 hurdle, also the 1.3400 round figure, it can aim for the 38.2% Fibonacci retracement of its October 2022 to June 2023 downturn, near 1.3445.

Following that, a downward-sloping resistance line from March, near 1.3520 at the latest, will be crucial to watch for clear directions.

On the contrary, a downside break of the resistance-turned-support line, around 1.3340 at the latest, can recall the intraday sellers.

Even so, a one-week-old rising support line near 1.3260 will prod the USD/CAD bears before directing them to the multi-month low marked in the last week around 1.3115.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3365 at the time of writing. Pair opened at 1.3281 and is trading with a change of 0.63% % .

The pair is trading above its 20 Daily moving average @ 1.3247, below its 50 Daily moving average @ 1.3402 , below its 100 Daily moving average @ 1.3491 and below its 200 Daily moving average @ 1.3507

The previous day high was 1.3293 while the previous day low was 1.322. The daily 38.2% Fib levels comes at 1.3265, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3248, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3236, 1.3192, 1.3163
• Pivot resistance is noted at 1.3309, 1.3338, 1.3382

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