The USD/CAD currency pair is currently trading below the significant threshold of 1.4400 but continues to exhibit a bullish trend. The 14-day Relative Strength Index (RSI) remains above the neutral level of 50, indicating sustained upward momentum. Immediate support for the pair is found at the nine-day Exponential Moving Average (EMA) of 1.4374, which could help stabilize prices if they decline.
In the latest trading sessions, the USD/CAD pair has gained for two consecutive days and is positioned close to the 1.4400 mark during Tuesday’s Asian trading hours. A review of the daily chart shows that this pair is operating within an ascending channel, reinforcing the prevailing positive trend. The RSI’s position, hovering just above 50, lends support to the optimistic outlook, with a constant RSI above this threshold further affirming the bullish sentiment.
The ongoing strength of the USD/CAD can also be observed as it trades marginally above both the nine- and 14-day EMAs, a pattern that typically signals robust short-term price action. This technical alignment suggests there is considerable buying interest in the market, paving the way for potential gains moving forward.
Looking ahead, should the USD/CAD challenge the psychological barrier at 1.4400, there is a possibility of reaching 1.4518, marking the highest level since early 2020. Resistance is also expected near the top of the ascending channel, around 1.4830.
On the downside, the immediate support level at the nine-day EMA is critical at 1.4375, with the 14-day EMA following closely at 1.4373. This area aligns with the lower boundary of the ascending channel, approximately at 1.4350, creating a strong support zone that could protect against a more significant decline.
