USD/CAD technical analysis: Break of 61.8% Fibo. drives bulls toward 16-week old trendline

• A successful break of 61.8% Fibonacci retracement highlights four-month-old trend-line resistance.
• Key data from the US will provide fresh near-term direction.

The U-turn from 1.3375 at the May-start triggered the USD/CAD pair’s gradual increase to 1.3470 on early Friday.

Given the pair’s sustained trading beyond 61.8% Fibonacci retracement of December – February decline, it is more likely to revisit 1.3520/25 resistance area with an upward sloping trend-line since January 07, at 1.3540, being a follow-on target.

Though, an area covering late-December lows around 1.3570/65 can questions bulls afterward, if not then 1.3610 and 1.3665 might flash on the chart.

On the downside, 61.8% Fibonacci retracement level of 1.3435 could act as immediate support during the pullback, a break of which can recall 1.3400 as a quote.

Should there be additional declines below 1.3400, 1.3375 and 50-day SMA level of 1.3360 may become sellers’ favorites.

USD/CAD daily chart

Trend: Positive