USD/CAD Price Analysis: Break of monthly falling trendline favors bulls to attack 1.3400

• USD/CAD stays near the upper end of the 1.3370/3400 trading range.
• A clear break of short-term resistance line, now support, joins bullish MACD to lure the buyers.
• Sellers may wait for fresh monthly low before entering any traders.

USD/CAD trades near 1.3385 amid the initial Asian session on Monday. In doing so, the loonie pair stays beyond a downward sloping trend line from July 14 amid bullish MACD.

The same indicates the pair’s further upside towards the monthly top near 1.3450. Though, a 200-day SMA level of 1.3531 could challenge the bulls afterward.

In a case where the pair manages to cross 1.3530, the mid-July top near 1.3650 will lure the buyers.

Alternatively, the pair’s failure to keep the present breakout can recall the intraday sellers should the quote slips below 1.3370. However, a major downside is likely should the bears dominate below the current month’s low of 1.3230.

USD/CAD daily chart

Trend: Further upside expected