USD/CAD technical analysis: Bulls need quick progress above 200-day MA

• USD/CAD faced rejection at the 200-day MA for the fourth straight day on Monday. 
• A close above the 200-day MA would imply an extension of bounce from recent lows below 1.3150.

USD/CAD is currently trading at 1.3260, representing marginal losses on the day, having failed to take out the 200-day moving average (MA) resistance for the fourth straight day on Monday.

Notably, on Monday, the pair ran into offers near the 200-day MA of 1.3303 and closed at 1.3263, leaving a candle with a long-upper shadow in its wake. Friday's candle also carries a long upper shadow.

The repeated rejection at the key average has stalled the bounce from the Sept. 10 low of 1.3134.

A daily close above the 200-day MA, currently at 1.3303 is needed to put the bulls back in the driver's seat.

Meanwhile, acceptance below Friday's low of 1.3253 would validate the rejection at the 200-day MA and shift risk in favor of a drop to levels below 1.32.

Daily chart

Trend: Bullish above 200-day MA

Technical levels