Ella 
During the early European session on Monday, USD/CAD broke above the 200-day moving average resistance, and the bulls attacked the five-month-old descending resistance line. In the interim, a pullback in the price of WTI crude oil, Canada’s main export, affected USD/CAD, while also taking cues from U.S. bond yields and the dollar’s strength amid the market downturn. That said, USD/CAD is still up 0.11% intraday to around 1.3460 as of press time.
In other news: USD/CAD holds steady around 1.3440 mark, eyes on Canadian inflation and U.S. retail sales
In addition to the fundamental factors mentioned above, USD/CAD has finally broken the rising trend line from April 14, near 1.3400, and the MACD signal is bullish, keeping USD/CAD bulls on hold.
However, if USD/CAD closes above said resistance line on a daily basis, most recently around 1.3460, it will be warranted for bulls to hold on.
A possible challenge for USD/CAD buyers is also the monthly high around 1.3500, a break above which would point to a horizontal area formed by several tops from late April around 1.3655-70.
On the other hand, USD/CAD bears will look for a daily close below the 200-day moving average at 1.3450 to reconsider taking the lead.
Even so, the four-month-old uptrend around 1.3400 will act as a downside target before bears take over.
