The USD/CAD currency pair is currently demonstrating an upward momentum, potentially approaching the 1.4485 level, a high not seen since March 2020. As it continues to show a bullish trend, the 14-day Relative Strength Index (RSI) remains above 50, suggesting that positive market sentiment is likely to persist. During Thursday’s Asian trading hours, the pair was seen trading around 1.4390, indicating a sustained upward trajectory over three consecutive sessions.
The technical analysis reveals that the pair is confined within an ascending channel, reinforcing the overall bullish outlook. The RSI, which remains just above the neutral threshold, suggests that bullish sentiment is being maintained. Furthermore, USD/CAD is trading slightly above the nine- and 14-day Exponential Moving Averages (EMAs), which signals strong short-term price action and robust buying interest among market participants.
On the horizon, the pair stands ready to challenge the key psychological barrier of 1.4400 as it aims for 1.4485, the highest level it has achieved since early 2020. Should it break through this level, the next significant resistance could emerge at the upper limit of its ascending channel, near 1.4800. In terms of support, the initial cushion is located near the nine-day EMA at around 1.4377. Additional support is anticipated at the 14-day EMA, which is further positioned at 1.4374, aligning with the lower boundary of the current ascending channel.
Overall, the current technical indicators suggest a promising outlook for the USD/CAD pair, with potential for further gains in the near term as long as it maintains above critical support levels.
