USD/CAD Price Analysis: Sellers need validation from 1.3670-65

• USD/CAD retreats from seven-day high, prints the first daily loss in six.
• Convergence of previous resistance, 200-SMA challenges sellers amid upbeat RSI conditions.
• Multiple hurdles to test bulls before the yearly top.

USD/CAD seesaws around the intraday low as it pares the first weekly gain in three heading into Thursday’s European session. In doing so, the Loonie pair makes rounds to 1.3700, after flashing the day’s low of 1.3682.

Even so, the quote defends the previous day’s upside break of a downward-sloping resistance line from October 13, now supporting around 1.3670. Also increasing the strength of the 1.3670-65 area is the 200-SMA.

It’s worth noting that the firmer RSI (14) and a successful break of the previous key resistances keep the USD/CAD buyers hopeful of reaching the yearly top surrounding 1.3980. However, multiple hurdles near 1.3750 and 1.3830 could test the upward trajectory.

In a case where the Loonie pair remains firmer past 1.3980, the 1.4000 psychological manget may act as an extra check for the bulls before directing them to the May 2020 high near 1.4175.

Meanwhile, a downside break of the resistance-turned-support confluence near 1.3670-65 isn’t an open welcome to the USD/CAD bears as a weekly ascending trend line, close to 1.3550, offers an additional filter to probe the declines.

Additionally challenging the pair’s south run is the horizontal support including multiple lows marked since early October, near 1.3500.

USD/CAD: Four-hour chart

Trend: Bullish