USD/CAD aiming to conquer 100-DMA resistance at 1.2930

The USD/CAD pair maintained its strong bid tone and has now moved back to session high level to currently trade around 100-day SMA immediate resistance near 1.2930.

With a high degree of correlation, the Canadian Dollar is being weighed down by softer tone surrounding crude oil prices. Adding to this, a broad based recovery in the US Dollar ahead of this week's macro releases from the US and the Fed Chair Janet Yellen speech at the Jackson Hole Symposium is assisting the pair to build on to Friday's recovery gains. 

Next on tap would be Canadian wholesale sales data for June that might provide the required momentum to lift the pair beyond 100-day SMA resistance.

How strong has the move been?

Spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is strongly bullish. RSI is in neutral territory at 63.09, up from it’s last hourly close at 62.22, while ADX is ranging above 30 at 25.08, down from 32.46 at the last hourly close.

Looking to a daily chart, we see that RSI is neutral at 41.74. The 200 SMA is currently at 1.2839, down from 1.2926 at the last period close, and declining on the hourly USD/CAD chart. Moving with a downward trend, the exponential average closing price is 1.2980.

What price levels and patterns have to be considered?

Immediate resistance ahead is seen at 1.2933 (Daily 100 SMA), 1.2937 (Daily High) and 1.2966 (Daily Classic R2). Next support to the downside can be found at 1.2893 (Yesterday's High), 1.2891 (Hourly 20 EMA), 1.2890 (Daily Open) and 1.2873 (Daily Low).

Looking at price patterns, we can see a Piercing Line 1-hour candlestick formation.