USD/CAD Technical Analysis: bulls in control

USD/CAD could continue to gain altitude in the near future on the back of a bullish technical setup and hawkish Fed hike.

4-hour chart                                        

• Both pennant breakout and the ascending 50, 100, and 200 moving averages (MAs) indicate the bulls are in control. The RSI, however, is closing on overbought levels. As a result, the bullish momentum may wane or a pullback could be in the offing before further upside unfolds.
• Notably, the Fed left the markets behind the curve by forecasting two rate hikes in 2019. The American dollar, therefore, is likely to remain bid, while heading into the year's end.
• So, the USD/CAD pair could soon find acceptance above 1.35 and rise toward the Dec. 2016 high of 1.3598.
• The bullish pressure would weaken if the pair closes below the ascending 10-day MA, currently at 1.3404.

Trend: Bullish