USD/CAD Price Analysis: Critical resistance near 1.2460 inside ascending channel

• USD/CAD consolidates gains following the previous session’s stellar performance.
• Bulls face a multi-month resistance near the 1.2460-1.2465 zone.
• Momentum oscillator trades with positive bias indicate further upside.

USD/CAD accumulates minute gains on Wednesday in the initial Asian trading session. The pair confide in a narrow trading range of 10 pips with no meaningful traction.

At the time of writing, USD/CAD is trading at 1.2461, down 0.01% for the day.

USD/CAD daily chart

On the daily chart, after rising sharply from the lows of 1.2129 on June 15, the pair refreshed the multi-month high near the 1.2490 level in four trading sessions.  But failed to preserve the momentum and retreated toward 1.2300.

USD/CAD is hovering in the upside trending channel from the low of 1.2000 made in June.  The pair confide the movement between 1.2300 and 1.2460 at present.

That said, a sustained break of the 1.2460 level could mean the continuation of the prevailing uptrend with the immediate target in place at the 1.2500 horizontal level.

The Moving Average Convergence Divergence (MACD) indicator holds onto the positive territory with bullish crossover. It signifies that there is plenty of room for the higher price action in the pair.

Next, the USD/CAD bulls would aim to recoup April 23 high at 1.2534 followed by the 1.2565 horizontal resistance level.

Alternatively, if price starts moving lower, the bears could test the 100-day Simple Moving Average (SMA) at 1.2382. 

A daily close below the 100-day SMA could mean more weakness in USD/CAD toward the 1.2300 horizontal support level.

If the lower trendline of the ascending channel breaks, then it would open the gates for the 1.2250 horizontal support area.

USD/CAD additional levels