USD/CAD Price Analysis: Approaches 1.2535-40 key resistance

• USD/CAD renews monthly high, steady around multi-day top of late.
• Convergence of 100, 50-DMA challenges further upside moves.
• Two-week-old support line tests pullback moves amid firmer Momentum line.

USD/CAD bulls take a breather after refreshing the monthly peak with 1.2511 during early Thursday.

Sustained trading beyond a fortnight-long support line joins firmer Momentum line to keep buyers hopeful. However, a convergence of the 100-DMA and 50-DMA near 1.2535-40 becomes a tough nut to crack for the bulls.

Should the quote rises past 1.2540, 38.2% Fibonacci retracement (Fibo.) of June-August upside, around 1.2590 will precede the 1.2600 threshold to add to the upside filters.

Meanwhile, pullback moves remain less problematic until staying beyond the stated support line around 1.2440.

Following that, the 61.8% Fibo. and an upward sloping trend line from June, respectively around 1.2365 and 1.2330, gains the market’s attention before confirming the bearish trend.

USD/CAD: Daily chart

Trend: Further upside expected