USD/CAD technical analysis: Looks north with channel breakout

• USD/CAD's daily chart shows a falling channel breakout.
• Technical indicators like the RSI are also reporting bullish conditions.

USD/CAD closed at1.3165 on Thursday, confirming a falling channel breakout on the daily chart.

The breakout is backed by an above 50-reading on the 14-relative strength index. Further, the 5-, 10-and 21-day moving averages are trending north.

The moving average convergence divergence (MACD) histogram is also gaining altitude, a sign the bullish momentum is gathering pace.

All-in-all, the path of least resistance is to the higher side. The pair could rise to 1.32 and possibly to 1.3266 (200-day MA) in the short-term.

The bullish view would be aborted if the pair finds acceptance below the ascending 10-day MAs.

Daily chart

Trend: Bullish

Pivot points