The USD/CAD currency pair is currently testing resistance at the psychologically significant level of 1.4450, after a notable six-day upward trend ended. As of Friday in the Asian session, the pair remained around 1.4440, demonstrating its potential for further movement. Recent technical analysis indicates that the pair is positioned above both the nine-day and 14-day Exponential Moving Averages (EMAs), suggesting a solid short-term bullish momentum.
The persistence of the bullish outlook is further supported by the 14-day Relative Strength Index (RSI), which is maintaining a position above 50. A successful breakout above the resistance level at 1.4450 could signal a bullish rally towards 1.4793, a peak not seen since March 2003. However, for the bullish sentiment to sustain, the pair must remain above important support levels.
The immediate support for the USD/CAD is seen at the nine-day EMA, located at 1.4356. If this level is breached, the next critical support is at the 14-day EMA of 1.4334. A decline below these support levels could undermine the bullish momentum, potentially leading the pair towards recent lows of 1.4151, observed in mid-February. A move further downward past this level could result in the pair targeting the four-month low of 1.3927, encountered in late November.
In summary, while the USD/CAD is showcasing positive trends underpinned by technical indicators, traders should monitor these pivotal resistance and support levels closely. The market dynamics may shift based on the pair’s ability to navigate these thresholds in the weeks ahead.
