USDCAD touched a fresh five-month high of 1.3358 on Wednesday, trading not far below its firmest since June 2017 of 1.3385 hit in late June of the current year.
The Tenkan- and Kijun-sen lines are positively aligned on the daily chart, acting as a testament of the bullish sentiment that is in place in the short term.
Stronger gains may meet resistance around the 1.3385 peak. A decisive break above would turn the attention to the 1.35 handle which may hold psychological significance.
On the downside, support could come around the July top of 1.3289. The area around the Tenkan-sen at 1.3242, which also encapsulates the 1.3225 high, would come in focus in case of steeper losses. Lower still, the Kijun-sen at 1.3186 would be eyed.
The medium-term picture is looking positive, with price action comfortably above the 50- and 100-day moving average lines, as well as above the Ichimoku cloud. Additionally, the 50- and 100-day MAs have just recorded a bullish cross.
Overall, both the short- and medium-term outlooks are looking bullish at the moment. For perspective, year-to-date, the pair is trading higher by 6.1%.
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