USD/CAD Price Analysis: Remains trapped between two key averages, awaits fresh impetus

• USD/CAD remains on track to retest 200-DMA at 1.2614.
• 21-DMA is the level to beat for the bears, as RSI remains bullish.
• Acceptance above 200-DMA is needed to revive the uptrend.

USD/CAD is looking to build onto Thursday’s rebound in the European session, helped by the gains in the US dollar across the board.

Despite the upbeat momentum, the dollar bulls remain in control, courtesy of the uptick in the US Treasury yields. A pause in the oil-price rally also aids the upside in the spot.

The currency pair now awaits the US Markit Preliminary PMIs for fresh impetus, as the bulls keep their sight on the descending 200-Daily Moving Average (DMA) at 1.2614.

Acceptance above the latter would revive the bullish momentum, with the focus back on the yearly highs of 1.2807.

The 14-day Relative Strength Index (RSI) holds comfortably above the midline, underpinning the buying interests.

USD/CAD: Daily chart

Meanwhile, the bulls remain hopeful so long as the price holds above the upward-sloping 21-DMA at 1.2488.

Ahead of that cushion, the bears need to beat Wednesday’s low of 1.2525.

All in all, the major needs a strong catalyst to break the two-day range play below the 21 and 200-DMAs.

USD/CAD: Additional levels